Required information Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 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, 460 shares of preferred stock and 5,600 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March May July 1 Issue 2,700 shares of common stock for 8 per share. 15 Purchase 560 shares of treasury stock for $51 per share. 10 Resell 360 shares of treasury stock purchased on May 15 for $56 per share. October 15 Issue 360 shares of preferred stock for $61 per share. December 1 Declare a cash dividend on both common and preferred stock of $2.10 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, $460; Common Stock, $56; Additional Paid-in Capital, $84,000; and Retained Earnings, $33,700. Net income for the year ended December 31, 2021, is $14,000. 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 View journal entry worksheet General Innal nahit General Journal Debit Credit 156,600 No Date 1 March 01, 2021 Cash Common Stock Additional Paid-in Capital 2 May 15, 2021 Treasury Stock Cash 27 156,573 28,560 28,560 3 July 10, 2021 Cash 20,160 Treasury Stock 18,360 Additional Paid-in Capital 1,800 4 October 15, 2021 Cash 21,960 Preferred Stock 360 Additional Paid-in Capital 21,600 5 December 01, 202 Dividends Dividends Payable 15,708 15,708 6 December 15, 202 Dividends Payable Cash 15,708 15,708 Journal entry worksheet 1 2 3 4 5 6 7 Record the declaration of a cash dividend on both common and preferred stock of $2.10 per share to all stockholders. (Hint: Dividends are not paid on treasury stock.) Note: Enter debits before credits. General Journal Debit Credit 15,708 15,708 Date December 01, 2021 Dividends Dividends Payable Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 Record the entry on December 15. Note: Enter debits before credits. Date 5 7 General Journal Debit Credit 15,708 15,708 December 15, 2021 Dividends Payable Cash Record entry Clear entry View general journal View transaction list Journal entry worksheet < 2 3 5 6 7 Record the cash dividends declared on December 1. Note: Enter debits before credits. Date December 31, 2021 General Journal Debit Credit Record entry Clear entry View general journal