Answered step by step
Verified Expert Solution
Question
1 Approved Answer
National League Gear has two classes of stock authorized: 5%, $20 par preferred, and $5 par value common. The following transactions affect stockholders equity during
National League Gear has two classes of stock authorized: 5%, $20 par preferred, and $5 par value common. The following transactions affect stockholders equity during 2024, National Leagues first year of operations:
February 2 | Issue 1.5 million shares of common stock for $30 per share. |
---|---|
February 4 | Issue 550,000 shares of preferred stock for $24 per share. |
June 15 | Purchase 150,000 shares of its own common stock for $25 per share. |
August 15 | Resell 112,500 shares of treasury stock for $40 per share. |
November 1 | Declare a cash dividend on its common stock of $1.50 per share and a $550,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends are not paid on treasury stock.) |
November 30 | Pay the dividends declared on November 1. |
Record each of these transactions.
This is what I am missing
4 | August 15, 2024 | Cash | 4,500,000 | |
Additional Paid-In Capital | ||||
Treasury Stocks | ||||
5 | November 01, 2024 | Dividends | ||
Dividends Payable | ||||
6 | November 30, 2024 | Dividends Payable | ||
Cash |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started