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 $53 per share.
February		14		Issue 43,000 shares of preferred stock for $13 per share.
May		8		Purchase 12,000 shares of its own common stock for $43 per share.
May		31		Resell 6,000 shares of treasury stock for $48 per share.
December		1		Declare a cash dividend on its common stock of $0.40 per share and a $17,200 (4% 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.

Problem 10-6A Part 1

Required:

1. Record each of these transactions.

2. Prepare the stockholders equity section of the balance sheet as of December 31, 2021. Net income for the year was $473,000.