27.

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 $68 per share. February 14 Issue 58,000 shares of preferred stock for $13 per share. May 8 Porchase 12,000 shares of its own common stock for $58 per whare. May 31 Resell 6,000 shares of treasury stock for $63 per share. December 1 Declare a cash dividend on its common stock of $0.35 per share and a $23,200 (48 of par value) canh 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 dividende declared on December 1. Required: 1. Record each of these transactions. If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account fleld.) No Credit 1 Answer is not complete. Date General Journal January 02, 2021 Cash Common Stock Additional Paid In Capital Debit 8,160,000 120,000 804,000 OOO 000 2 754,000 February 14, 2021 Cash Preferred Stock Additional Paid In Capital 580,000 174,000 3 May 08, 2021 Treasury Stock Cash 696,000 696,000 1 > 8,160,000 January 02, 2021 Cash Common Stock Additional Paid-In Capital 000 120,000 804,000 2 754,000 February 14, 2021 Cash Preferred Stock Additional Paid-In Capital 0 580,000 174,000 3 May 08, 2021 Treasury Stock Cash 696,000 696,000 4 May 31, 2021 378,000 Cash Treasury Stock Additional Paid-In Capital 000 348,000 30,000 5 December 01, 202 Retained Earnings Preferred Stock Common Stock 63,100 23,200 39,900 & 6 December 15, 202 No Journal Entry Required > 7 December 30, 202 Preferred Stock Common Stock Cash 23,200 39,900 63.100