10-11: National League Gear has two classes of stock authorized: 4%, $20 par preferred, and $5 par value common. The following transactions affect stockholders equity during 2018, National Leagues first year of operations:
February 2 Issue 1.3 million shares of common stock for $22 per share.
February 4 Issue 470,000 shares of preferred stock for $23 per share.
June 15 Repurchase 130,000 shares of its own common stock for $17 per share.
August 15 Reissue 97,500 shares of treasury stock for $32 per share.
November 1 Declare a cash dividend on its common stock of $1.30 per share and a $376,000 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends are not paid on treasury stock.)
November 30 Pay the dividends declared on November 1.
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2. Prepare the stockholders equity section of the balance sheet as of December 31, 2018. Net income for the year was $4,770,000. (Amounts to be deducted should be indicated by a minus sign.)
10. 10.00 points value Required: 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No journal ent View transaction list Journal entry worksheet Record the issue of additional common stock. Note: Enter debits before credits. Date General Journal Debit Credit February 02, 2018 Record entry Clear entry View general journal 10. 10.00 points Required: 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry requ View transaction list Journal entry worksheet Record the issue of preferred stock Note: Enter debits before credits. Date General Journal Debit Credit February 04, 2018 Record entry Clear entry View general journal 10. 10.00 points Required: 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required View transaction list Journal entry worksheet 6 7 Record the purchase of treasury stock Note: Enter debits before credits. Date General Journal Debit Credit June 15, 2018 Record entry Clear entry View general journal 10. 100 points value Required: 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry requi View transaction list Journal entry worksheet Record relssue of treasury stock purchased. Note: Enter debits before credits. Date General Journal Debit Credit August 15, 2018 Record entry Clear entry View general journal 10. value 10.00 points Required 1. Record each of these transactions. (If no entry is required for a transactionlevent, select "No journal entry required" in th View transaction list Journal entry worksheet Record declaration of cash dividend. Note: Enter debits before credits. Date General Journal Debit Credit November 01, 2018 Record entry Clear entry View general journal 10. 1000 points value Required 1. Record each of these transactions. (If no entry is required for a transactionlevent, select "No journal entry required" in th View transaction list Journal entry worksheet Record the entry on the date of record. Note: Enter debits before credits. Date General Journal Debit Credit November 15, 2018 Record entry Clear entry View general journal 10. 1000 points value Required 1. Record each of these transactions. (If no entry is required for a transactionlevent, select "No journal entry required" in the t View transaction list Journal entry worksheet 5 Record the payment of cash dividends declared. Note: Enter debits before credits. Date General Journal Debit Credit November 30, 2018 Record entry Clear entry View general journal 10.00 points 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. Net income for the year was $4,770,000. (Amounts to be deducted should be indieated by a minus sign value: 10.00 polnts 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. Net income t NATIONAL LEAGUE GEAR Balance Sheet (Stockholders' Equity Section) December 31, 2018 Stockholders' equity Total paid-in capital Total stockholders' equity
