Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 103,104,105) [The following information applies to the questions displayed below] Donnie Hilfiger has two classes of stock outhorized: \$1 par preferred and $0.01 par value common. As of the beginning of 2021, 300 shares of preferred stock and 4,000 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 1,100 shares of common stock for $42 per share. May 15 Purchase 400 shares of treasury stock for $35 per share. Juty 10 Resetl 200 shares of treasury stock purchased on May 15 for $40 per share. october is 1ssue 200 shares of preferred stock for $45 per share. December 1 Declare a cash dividend on both common and preferred stock of $0.50 per share to atl stockholders of record on Decenber 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hifiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, \$300; Common Stock, \$40; Additional Paid in Copital, \$76,000; and Retained Earnings, \$30,500. Net income for the year ended December 31,2021, is $10,800. roblem 10-2A Part 1 equired: Record each of these transactions, (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in Record each of these Journal entry worksheet 567 Record the issuance of 1,100 shares of common stock for $42 per share. Note: Enter debits before credits. Journal entry worksheet 7 Record the purchase of 400 shares of treasury stock for $35 per share. Note: Enter debits before credits. Journal entry worksheet Record the resell 200 shares of treasury stock purchased on May 15 for $40 per share. Note: Enter debits before credits. Journal entry worksheet Record the issuance of 200 shares of preferred stock for $45 per share. Note: Enter debits before credits. Journal entry worksheet Record the declaration of a cash dividend on both common and preferred stock of $0.50 per share to all stockholders. (Hint: Dividends are not paid on treasury stock.) Note: Enter debits before credits. Journal entry worksheet Record the entry on December 15. Note: Enter debits before credits. Journal entry worksheet