Problem 10-6A Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7) {The following information applies to the questions displayed below.) Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations: January 2 Issue 110,000 shares of common stock for $70 per share. February 14 Issue 60,000 shares of preferred stock for $12 per sharo. May 8 Repurchase 11,000 shares of its own common stock for $60 per share. May 31 Reissue 5.500 shares of treasury stock for $65 per share. December 1 Declare a cash dividend on its common stock of $0.25 per share and a $36.000 (6% of par value) cash dividend on its preferred stock 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: 1. Record each of these transactions. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) No Credit Answer is not complete. Date General Journal January 02, 2021 Cash Common Stock Additional Paid-In Capital Debit 460.000 1 120,000 340,000 2. 598,000 February 14, 2021 Cash Preferred Stock Additional Paid-In Capital 138,000 460,000 3 May 08, 2021 552,000 Treasury Stock Cash 552,000 4 May 31, 2021 306,000 Cash Treasury Stock Additional Paid-In Capital 5 December 01, 202 Dividends Dividends Payable 6 December 15, 202 No Journal Entry Required 7 December 30, 202 Dividends Payable Cash Major League Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issue 120,000 shares of common stock for $56 per share. February 14 Issue 46,000 shares of preferred stock for $13 per share. May 8 Purchase 12,000 shares of its own common stock for $46 per share. May 31 Resell 6,000 shares of treasury stock for $51 per share. December 1 Declare a cash dividend on its common stock of $0.70 per share and a $18,480 (4% of par value) cash dividend on its preferred stock 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. Problem 10-6A Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $476,000. (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Total Paid-in Capital 0 Total Stockholders' Equity $ 0