Olson Communications, Inc., began 2010 with 2.9 million shares of \($1\) par common stock issued and outstanding. Beginning paid-in capital in excess of par was \($6\) million, and retained earnings was \($7\) million. In February 2010, Olson Communications, Inc., issued 100,000 shares of stock at \($11\) per share. In September, when the stock’s market price was \($12\) per share, the board of directors distributed a 10% stock dividend.

Requirements

1. Make the journal entries for the issuance of stock for cash and for the declaration and distribution of the 10% stock dividend.

2. Prepare the company’s statement of stockholders’ equity for the year ended December 31,2010.