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 2018, its first year of operations:

January 2 Issue 120,000 shares of common stock for $59 per share.

February 14 Issue 49,000 shares of preferred stock for $13 per share.

May 8 Repurchase 12,000 shares of its own common stock for $49 per share.

May 31 Reissue 6,000 shares of treasury stock for $54 per share.

December 1 Declare a cash dividend on its common stock of $0.55 per share and a $19,600 (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.

Required:

1. Record each of these transactions.

2. Prepare the stockholders equity section of the balance sheet as of December 31, 2018. Net income for the year was $479,000.

Date General Journal January 02, 2018 Cash Common stock Additional paid-in capital February 14, 2018 Cash Preferred stock Additional paid-in capital May 08, 2018 Treasury stock Cash May 31, 2018 cash Treasury stock Additional paid-in capital December 01, 2018 Dividends Dividends payable December 15, 2018 No journal entry required December 30, 2018 Dividends payable Cash Debit Credit