Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation (L010-2, 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 $0.01 par value common. As of the beginning of 2021, 420 shares of preferred stock and 5,200 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,300 shares of common stock for $54 per share. May 15 Purchase 520 shares of treasury stock for $47 per share. July 10 Resell 320 shares of treasury stock purchased on May 15 for $52 per share. October 15 Issue 320 shares of preferred stock for $57 per share. December 1 Declare a cash dividend on both common and preferred stock of $1.70 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, 2021: Preferred Stock, $420, Common Stock, $52; Additional Pald-in Capital, $82,000, and Retained Earnings, $32,900. Net Income for the year ended December 31, 2021, is $13,200. Problem 10-2A Part 1 Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 > Record the issuance of 2,300 shares of common stock for $54 per share. Note: Enter debits before credits. Date General Journal Debit Credit March 01, 2021 ! Required Information Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation (L010-2, 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 $0.01 par value common. As of the beginning of 2021, 420 shares of preferred stock and 5,200 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,300 shares of common stock for $54 per share. May 15 Purchase 520 shares of treasury stock for $47 per share. July 10 Resell 320 shares of treasury stock purchased on May 15 for $52 per share. October 15 Issue 320 shares of preferred stock for $57 per share. December 1 Declare a cash dividend on both common and preferred stock of $1.70 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, 2021: Preferred Stock, $420, Common Stock, $52, Additional Pald-in Capital, $82,000; and Retained Earnings, $32,900. Net Income for the year ended December 31, 2021, is $13,200. Problem 10-2A Part 2 2. Select whether each of the following transactions Increases ( + ) or decreases ( - ) total assets, total liabilities, and total stockholders' equity. (If none of the categories apply for a particular Item, leave the cell blank.) Transaction Total Assets Total Liabilities Total Stockholders Equity Issue common stock Purchase treasury stock Resell treasury stock Issue preferred stock Declare cash dividends Pay cash dividends Required Information Problem 10-3A Indicate effect of stock dividends and stock splits (L010-6) [The following information applies to the questions displayed below.) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider elther a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 1 Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value, and share price. (Round "Par value per share" to 2 decimal places.) Before After 100% Stock Dividend After 2-for-1 Stock Split S 1,100 50.000 0 0 Common stock, S1 par value Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price 51,100 22.950 $ 74,050 0 S 0 1,100 69 1.00 $ 112 Requlred Information Problem 10-3A Indicate effect of stock dividends and stock splits (LO10-6) [The following information applies to the questions displayed below.] Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider elther a 100% stock dividend or a 2-for-1 stock split. Problem 10-3A Part 2 2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making It attractive to a larger number of potential Investors. True or False True False