8 Required information [The following information applies to the questions displayed below! 4 Major League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations January 2 Issue 100,000 shares of common stock for 560 per share February 14 Issue 50,000 shares of preferred stock for 511 per share. May Purchase 10,000 shares of its own connon stock for $56 per share *1 Resell,000 shares of treasury stock for $61 per share December 1 Declare a cash dividend on its conmon stock of 10.45 per share and a $20.000 (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, Wint: Dividends are not paid on Treasury srock.) December 30 Pay the cash dividends declared on December 1 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 Net income for the year was $486,000. (Amounts to be deducted should be indicated by a minus sign) MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity 00 May 31 Rosell 5,000 shares of treasury stock for $61 per share December 1 Declare a cash dividend on its common stock of $0.45 per share and a $28.000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on December 15. The dividend is payable on December 39. (hunt: Dividends are not paid on treasury stack.) December 30 Pay the cash dividends declared on December 1. Part 2 of 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $486,000 (Amounts to be deducted should be indicated by a minus sign.) 4 MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity Preferred Stock Common Stock Additional Paid in Capital etoot Total Paiden Capital Retained Earings Treasury Stock You Stockholders' Equity $ 0