Problem 10-6A (Algo) Record equity transactions and prepare the stockholders' equity section (LO10-2, 103,104,105,107) [The following information applies to the questions displayed below.] Tennis Apparel has two classes of stock authorized: 6%,$10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 110,000 shares of cotron stoek for $67 per ahare. February 14 Issue 57,000 shares of preferred stook tor $12 per share. May 5 Purehase 11,000 shares of ith ovn common stook for $57 per whare. May 31 honel1 5,500 aharen of treasury utoek for $62 per share. Decerber 1 beclare a canb dividend on its conmon stock of $0,40 per share and a 534,200(61 of par value) cash dividend on its preferred otock payable to al1 atockholders of record on Deceeber 15. The alvidend is payable on Decenber 30. (Hint? Dividends are not paid on treasury stock.) December 30 Fay the cash dividendn declared on Deceaber 1. Problem 10-6A (Algo) Part 1 Required: 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheat 2 Record the issuance of 110,000 shares of common stock for $67 per share. Note: Enter debits before credits. Record the issuance of 57,000 shares of preferred stock for $12 per share. Note: Enter debits before credits. Record the purchase of 11,000 shares of its own common stock for $57 per share. Note: Enter debits before credits. Record the resale of 5,500 shares of treasury stock for $62 per share. Note: Enter debits before credits. Record the declaration of a cash dividend on its common stock of $0.40 per share and a $34,200 ( 6% of par value) cash dividend on its preferred stock payable to all stockholders. The dividend is payable on December 30 . (Hint: Dividends are not paid on treasury stock.) Note: Enter debits before credits. Record the entry on December 15 , the date of record. Note: Enter debits before credits. Record the payment of the cash dividends declared on December 1. Note: Enter debits before credits. Required information Problem 10-6A (Algo) Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7) [The following information applles to the questions displayed below.] Tennis Apparel has two classes of stock authorized: 6%,$10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 110,000 shares of combon stoek for $67 per share. rebruary 14 . Issue 57,000 shares of preferred stock for $12 per share. May a Purehase 11,000 sharen of its own common atock for $57 per share. May 31 Resel1 5,500 shares of treasury stock for $62 per share. Decenber 1 Declare a canh dividend on its comson stoek of $0.40 per share and a $34,200(61 of par value) cash dividend on itn preferred stock payable to all stoekholders of record on December 15. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) Decerber 30 pay the canh dividends declared on December 1. Problem 10-6A (Algo) Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $487,000. Amounts to be deducted should be indicated by a minus sign.) 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $487,000. (Amounts to be deducted should be indicated by a minus sign.)
