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 2024, National League's first year of operations:

February 2

Issue 1.3 million shares of common stock for $17

per share.

February 4

Issue 420,000 shares of preferred stock for $22

per share.

June 15

Purchase 130,000 shares of its own common stock for $12 per share.

August 15

Resell 97,500 shares of treasury stock for $27 per share. November 1

Declare a cash dividend on its common stock of $1.30 per share and a $504,000 (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.

2. Prepare the stockholders equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,720,000. (Amounts to be deducted should be indicated by a minus sign.)

Required information [The following information applies to the questions displayed below.] 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 2024 , National League's first year of operations: February 4 Issue 420,000 shares of preferred stock for $22 June 15 Purchase 130,000 shares of its own common stock August 15 Resel1 97,500 shares of treasury stock for $27 per share. November 1 Declare a cash dividend on its common stock of $1.30 per share and a $504,000 (6\% of par value) cash dividend on its preferred stock payable to a11 stockholders of record on November 15. (Hint: Dividends are not paid on treasury stock.) November 30 Pay the dividends declared on November 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was \$4,720,000. (Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Preferred Stock Common Stock Additional Paid-in Capital Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity $