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Little League Apparel has two classes of stock authorized: 6 % , $ 1 0 par preferred, and $ 1 par value common. The following
Little League Apparel has two classes of stock authorized: $ par preferred, and $ par value common. The following transactions
affect stockholders" equity durling its first year of operations:
January Issue shares of connon stock for $ per share.
February Issue shares of preferred stock for $ per share.
May Purchase shares of its own common stock for $ per share.
May Rese shares of treasury stock for $ per share.
December Declare a cash dividend on its comnon stock of $ per share and a $ of par value cash dividend on its
preferred stock payable to all stockholders of record on Decenber The dividend is payable on Decenber Hint:
Dividends are not paid on treasury stock.
Decenber pay the cash dividends declared on Decenber
Required:
Determine the financial statement effects of each of these transactions
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is payable on December Hint: Dividends are not paid on treasury stock.
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