Problem 10-6B 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.) National League Gear has two classes of stock authorized: 5%, $20 par preferred, and $5 par value common. The following transactions affect stockholders' equity during 2021, National League's first year of operations: February 2 Issue 1.2 million shares of common stock for $18 per share. February 4 Issue 430,000 shares of preferred stock for $24 per share. June 15 Purchase 120,000 shares of its own common stock for $13 per share. August 15 Resell 90,000 shares of treasury stock for $28 per share. November 1 Declare a cash dividend on its common stock of $1.20 per share and a $430,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends are not paid on treasury stock.) November 30 Pay the dividends declared on November 1. Problem 10-6B Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $4,730,000. (Amounts to be deducted should be indicated by a minus sign.) NATIONAL LEAGUE GEAR Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity: Preferred stock Common stock Additional paid-in capital Total paid-in capital 0 Retained earnings Treasury stock Total stockholders' equity $ 0