National League Gear has two classes of stock authorized: 6%, $20 par preferred, and $5 par value

Question:

National League Gear has two classes of stock authorized: 6%, $20 par preferred, and $5 common. The following transactions affect stockholders' equity during 2012, National League's first year of operations:
February 2 Issue 1 million shares of for $25 per share.
February 4 Issue 500,000 shares of preferred stock for $22 per share.
June 15 Repurchase 100,000 shares of its own for $20 per share.
August 15 Reissue 75,000 shares of treasury stock for $35 per share.
November 1 Declare a cash on its of $1 per share and a $600,000 (6% of cash on its preferred stock payable to all stockholders on record on November 15.
November 30 Pay the dividends declared on November 1.
Required:
1. Record each of these transactions.
2. Prepare the stockholders' equity section of the as of December 31, 2012. Net income for the year was $4,800,000.
Common Stock
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Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...