forever young has two classes of stock authorized: 100$ par preferred and 1$ par common.

Problem #1 Forever Young has two classes of stock authorized: $100 par preferred and $1 par common. As of the beginning of the year, 5,000 shares of common stock and no preferred shares have been issued. The following transactions affect stockholders' equity during the year Issue 1,000 additional shares of common stock for $30 per share. Issue 1,000 shares of preferred stock for $105 per share. Declare a cash dividend of $5 per share on preferred stock and $1.25 per share on common stock to all stockholders of record on July 15. Pay the cash dividend declared on July 1. Purchase 500 shares of treasury stock for $28 per share. Issue 200 shares of the treasury stock purchased on October 10 for $26 per share. January 10 March 1 July 1 July 31 October 10 November 1 Forever Young has the following beginning balances in its stockholders' equity accounts: Preferred stock, $0; common stock, $5,000; additional paid-in capital, S20,000; and retained earnings, $10,000. Required: 1. Record each of these transactions. 2. Indicate whether each of these transactions increases (+), decreases (-), or has no effect (NE), on total assets, total liabilities, and total stockholders' equity. Jan 10 Carsh Common stouk Adlitional padin Capital March 30,000 29000 1/000 Cash Common Stee Additonal Paidin cupital 105,000 100/000 Si000 ieal Piudend payable 6250 G250 Problem #2 This is a continuation of problem #1. Required Taking into consideration the beginning balances and all of the transactions during 2021, prepare the following: 1. The stockholders' equity section as of December 31, 2021. 2. The statement of stockholders' equity for the year ended December 31, 2021. Forever Young Balance Sheet (partial) December 31, 2021 Stockholders' equity: Preferred stock, $100 par value Common stock, $1 par value Additional paid-in capital Total paid-in capital Retained earnings Treasury stock Total stockholders' equity Forever Young Statement of Stockholders' Equity For the year ended December 31, 2021 Additional Paid-in Total Stockholders Treasury Stock Retained Preferred Stock Common Stock Equity Capital Earnings Balance, January 1 Issue common stock Issue preferred stock Cash dividends Purchase treasury stock Resell treasury stock Net income Balance, December 31