Part $1$ of $2$

$3$

points

$04$:$04$:$25$

eBook

Print

References

References

Required information

Problem $10-2$A $($Algo$)$ Record equity transactions and indicate the effect on the balance sheet equation $($LO$10-2,10-3,10-4,10-5)$

$[$The following information applies to the questions displayed below.$]$

Donnie Hilfiger has two classes of stock authorized: $$1$ par preferred and $$0\mathrm{.}01$ par value common. As of the beginning of $2024,390$ shares of preferred stock and $4,900$ shares of common stock have been issued. The following transactions affect stockholders' equity during $2024$:

March $1$ Issue $2,000$ shares of common stock for $$51$ per share.

May $15$ Purchase $490$ shares of treasury stock for $$44$ per share.

July $10$ Resell $290$ shares of treasury stock purchased on May $15$ for $$49$ per share.

October $15$ Issue $290$ shares of preferred stock for $$54$ per share.

December $1$ Declare a cash dividend on both common and preferred stock of $$1\mathrm{.}40$ per share to all stockholders of record on December $15.($Hint: Dividends are not paid on treasury stock.$)$

December $31$ Pay the cash dividends declared on December $1.$

Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January $1,2024$: Preferred Stock, $$390$; Common Stock, $$49$; Additional Paid$-$in Capital, $$80,500$; and Retained Earnings, $$32,300.$ Net income for the year ended December $31,2024,$ is $$12,600.$

Problem $10-2$A $($Algo$)$ Part $1$