2. Prepare the stockholders equity section of the balance sheet as of December 31, 2021. Net income for the year was $479,000.

Required information Problem 10-6A Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10- 4, 10-5, 10-7) [The following information applies to the questions displayed below.) Major League Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issue 120,000 shares of common stock for $59 per share. February 14 Issue 49,000 shares of preferred stock for $13 per share. 8 Purchase 12,000 shares of its own common stock for $49 per share. May 31 Resell 6,000 shares of treasury stock for $54 per share. 1 Declare a cash dividend on its common stock of $0.55 per share and a $19,600 (4% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. May December Journal entry worksheet 1 2 3 5 5 6 7 > Record the declaration of a cash dividend on its common stock of $0.55 per share and a $19,500 (4% of par value) cash dividend on its preferred stock payable to all stockholders. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) Note: Enter debits before credits. Date General Journal Debit Credit December 01, 2021 Record entry Clear entry View general journal Journal entry worksheet 2 3 5 6 7 > Record the declaration of a cash dividend payable to stockholders of record on December 15. Note: Enter debits before credits. General Journal Debit Credit Date December 15, 2021 Record entry Clear entry View general journal Journal entry worksheet Record the payment of the cash dividends declared on December 1. Note: Enter debits before credits. General Journal Debit Credit Date December 30, 2021 Record entry Clear entry View general journal MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Total Paid-in Capital 0 Total Stockholders' Equity $ 0