Question
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 2021, National Leagues first year of operations:
February 2 Issue 1.3 million shares of common stock for $33 per share.
February 4 Issue 580,000 shares of preferred stock for $24 per share.
June 15 Purchase 130,000 shares of its own common stock for $28 per share.
August 15 Resell 97,500 shares of treasury stock for $43 per share.
November 1 Declare a cash dividend on its common stock of $1.30 per share and a $580,000 (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.
1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | February 02, 2021 | |||
| 2 | February 04, 2021 | |||
| 3 | June 15, 2021 | |||
| 4 | August 15, 2021 | |||
| 5 | November 01, 2021 | |||
| 6 | November 15, 2021 | No Journal Entry Required | ||
| 7 | November 30, 2021 |
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