Universal Communications, Inc., began 2016 with 340,000 shares of $1 par common stock issued and outstanding. Beginning

Question:

Universal Communications, Inc., began 2016 with 340,000 shares of $1 par common stock issued and outstanding. Beginning Paid-in Capital in Excess of Par- Common was $590,000, and Retained Earnings was $750,000. In June 2016, Universal Communications, Inc., issued 13,000 shares of stock at $8 per share. In October, when the stock's market price was $12 per share, the board of directors distributed a

5 percent stock dividend.

Requirements

1. Make the journal entries for the issuance of stock for cash and for the declaration and distribution of the 5 percent stock dividend.

2. Prepare the company's statement of stockholders' equity for the year ended December 31, 2016. Ignore net income?

Common Stock
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