Oswala Inc

question 126

Essay

Oswala Inc. had the following balances in its shareholders' equity at the beginning of the current year (January 1, 2014): During the year ended December 31, 2014, the following transactions took place:
1. On January 1, issued 9,000 common shares at $18 per share.
2. On July 1, declared a 10% stock dividend on the common shares, market price $18.50 per share. The dividend is to be paid on August 15 to shareholders of record on July 31.
3. On August 15, the company paid the stock dividend.
4. On September 15, Ryder's board of directors declared a 4-for-1 stock split.
During the year, the company had a profit of $85,000.
Instructions
a. Prepare the journal entries to record the above transactions. Closing entries are not required.
b. Prepare a statement of changes in shareholders' equity for 2014.
c. Prepare the shareholders' equity section of the balance sheet at December 31, 2014.

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Definitions:

Glucose Molecule

A simple sugar and important energy source in living organisms, serving as a primary substrate for cellular respiration and a basic building block for carbohydrates.

Cellular Respiration

A metabolic process that occurs in cells where oxygen is used to break down glucose, producing ATP as energy for the cell.

NADH

Nicotinamide adenine dinucleotide (NAD) in its reduced form, a key coenzyme in the electron transport chain that generates ATP in cellular respiration.

Glycolysis

Glycolysis is a metabolic pathway that breaks down glucose into pyruvate, releasing energy and pyruvic acid as a byproduct.