Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation

Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2015, 330 shares of preferred stock and 4,300 shares of common stock have been issued. The following transactions affect stockholders equity during 2015:

March 1 Issues 1,400 shares of common stock for $45 per share.

May 15 Repurchases 430 shares of treasury stock for $38 per share.

July 10 Reissues 230 shares of treasury stock purchased on May 15 for $43 per share.

October 15 Issues 230 shares of preferred stock for $48 per share.

December 1 Declares a cash dividend on both common and preferred stock of $0.80 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)

December 15. (Hint: Dividends are not paid on treasury stock.)

December 31 Pays the cash dividends declared on December 1.

Donnie Hilfiger has the following beginning balances in its stockholders equity accounts on January 1, 2015: Preferred Stock, $330; Common Stock, $43; Additional Paid-in Capital, $77,500; and Retained Earnings, $31,100. Net income for the year ended December 31, 2015, is $11,400.

Prefere to show the each steps to solve the problem.

Journal Entry Worksheet Journal Entry Worksheet 0330607 Issues 1,400 shares of common stock for $45 per share. Record the transaction Issues 230 shares of preferred stock for $48 per share. Record the transaction General Journal General Journal Credit October 15, 2015 March 01, 2015 No journal entry required Accounts payable Accounts receivable Additional paid-in capital Advertising expense Repairs and maintenance expense Retained earnings Salaries expense Sales revenue Enter debits before credits Enter debits before credits record en done record en Journal Entry Worksheet Journal Entry Worksheet 0230600 Repurchases 430 shares of treasury stock for $38 per share. Record the transaction Declares a cash dividend on both common and preferred stock of $0.8 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) Record the declaration of cash General Journal Credit General Journal Credit December 01, 2015 ay Bonds payable Common stock Delivery expense Dividends Service fee expense Service revenue Stock dividends Supplies expense Utilities expense Enter debits before credits Enter debits before credits done record en done record en Journal Entry Worksheet Journal Entry Worksheet Reissues 230 shares of treasury stock purchased on May 15 for $43 per share, Record the transaction Declares a cash dividend on both common and preferred stock of $0.8 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) Record the entry on the date of record. Date General Journal Credit General Journal Credit December 15, 2015 Entertainment expense Interest expense Interest receivable Enter debits before credits Enter debits before credits done done record en record en Journal Entry Worksheet Journal Entry Worksheet Pays the cash dividends declared on December 1. Record the transaction. Reissues 230 shares of treasury stock purchased on May 15 for $43 per share, Record the transaction Date General Journal Credit General Journal Credit December 31, 2015 Interest receivable Interest revenue Notes payable Notes receivable ent exDense Enter debits before credits Enter debits before credits done record en record en