Problem $10-6$A alternative

Major League Apparel has two classes of stock authorized: $5\%,$$$10$ par preferred, and $$1$ par value common. The following transactions affect stockholders' equity during $2021,$ its first year of operations:

January $2$ Issue $100,000$ shares of common stock for $$55$ per share.

February $14$ Issue $45,000$ shares of preferred stock for $$11$ per share.

May $8$ Purchase $10,000$ shares of its own common stock for $$45$ per share.

May $31$ Resell $5,000$ shares of treasury stock for $$50$ per share.

Declare a cash dividend on its common stock of $$0\mathrm{.}75$ per share and a $$22,500(5\%$ of par value$)$ cash dividend on its preferred stock

December $1$ payable to all stockholders of record on December $15.$ The dividend is payable on December $30.($Hint: Dividends are not paid on treasury stock.$)$

December $30$

Pay the cash dividends declared on December $1.$

Required:

Record each of these transactions.

Prepare the stockholders' equity section of the balance sheet as of December $31,2021.$ Net income for the year was $$475,000.$

Prepare a Statement of Stockholder's Equity.