MAJOR LEAGUE APPAREL
Balance Sheet
(Stockholders' Equity Section)
December 31, 2018
Stockholders' equity:
Preferred stock	$570,000
Common stock	110,000
Additional paid in capital	7,401,500
Total paid-in capital	8,081,500
Retained earnings
Treasury stock
Total stockholders' equity	$8,081,500

Date	General Journal	Debit	Credit
December 01, 2018	Dividends
	Dividends payable

Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders equity during 2018, its first year of operations: January 2 Issue 110,000 shares of common stock for $67 per share. February 14 Issue 57,000 shares of preferred stock for $12 per share. May 8 Repurchase 11,000 shares of its own common stock for $57 per share. May 31 Reissue 5,500 shares of treasury stock for $62 per share. December 1 Declare a cash dividend on its common stock of $0.40 per share and a $34,200 (6% 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.