! 1 Required information Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.) Part 1 of 2 1.75 points Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 390 shares of preferred stock and 4,900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,000 shares of common stock for $51 per share. May 15 Purchase 490 shares of treasury stock for $44 per share. July 10 Resell 290 shares of treasury stock purchased on May 15 for $49 per share. October 15 Issue 290 shares of preferred stock for $54 per share. December 1 Declare a cash dividend on both common and preferred stock of $1.40 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. References Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $390; Common Stock, $49; Additional Paid-in Capital, $80,500; and Retained Earnings, $32,300. Net income for the year ended December 31, 2021, is $12,600. Problem 10-2A Part 1 Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the purchase of 490 shares of treasury stock for $44 per share. Note: Enter debits before credits. Date General Journal Debit Credit May 15, 2021 Record entry Clear entry View general journal Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the resell 290 shares of treasury stock purchased on May 15 for $49 per share. Note: Enter debits before credits. Date General Journal Debit Credit July 10, 2021 Record entry Clear entry View general journal Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the issuance of 290 shares of preferred stock for $54 per share. Note: Enter debits before credits. Date General Journal Debit Credit October 15, 2021 Record entry Clear entry View general journal Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the entry on December 15. Note: Enter debits before credits. Date General Journal Debit Credit December 15, 2021 Record entry Clear entry View general journal Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the cash dividends declared on December 1. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Record entry Clear entry View general journal 2. Select whether each of the following transactions increases ( + ) or decreases ( - ) total assets, total liabilities, and total stockholders' equity. (If none of the categories apply for a particular item, leave the cell blank.) Transaction Total Assets Total Liabilities Total Stockholders Equity Issue common stock Purchase treasury stock Resell treasury stock Issue preferred stock Declare cash dividends Pay cash dividends
