National League Gear has two classes of stock authorized: 6%, $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 1.2 million shares of common stock for $23 per share.

February 4 Issue 480,000 shares of preferred stock for $22 per share.

June 15 Purchase 120,000 shares of its own common stock for $18 per share.

August 15 Resell 90,000 shares of treasury stock for $33 per share.

November 1 Declare a cash dividend on its common stock of $1.20 per share and a $576,000 (6% 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. 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 $4,780,000.

2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net Income for the year was $4,780,000. (Amounts to be deducted should be Indicated by a minus sign.) NATIONAL LEAGUE GEAR Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Total paid-in capital Total stockholders' equity