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, 470 shares of preferred stock and 5,700 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,800 shares of common stock for $59 per share May 15 Purchase 570 shares of treasury stock for $52 per share. July 10 Resell 370 shares of treasury stock purchased on May 15 for $57 per share. October 15 SUO 370 shares of preferred stock for 562 per share. December 1 Declare a cash dividend on both common and preferred stock of $2.20 per share to all stockholders of record on December 15. (Hint Dividends are not paid on treasury stock.) December 31 Day 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. $470, Common Stock, $57: Additional Poid-in Capital, $84,500; and Retained Earnings, $33,900. Net Income for the year ended December 31, 2021, Is $14,200, 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.) 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, 470 shares of preferred stock and 5,700 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 $59 per share. May 15 Purchase 570 shares of treasury stock for $52 per share. July 10 Resell 370 shares of treasury stock purchased on May 15 for $57 per share. October 15 Issue 370 shares of preferred stock for $62 per share. December 1 Declare a cash dividend on both common and preferred stock of $2.20 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, $470; Common Stock, $57, Additional Paid-in Capital, $84,500; and Retained Ealnings, $33,900. Net income for the year ended December 31, 2021. Is $14,200. Problem 10-2A Part 2 2. Select whether each of the following transactions increases (+ ) or decreases ( - ) total assets, total tobilities, and total stockholders equity. (If none of the categories apply for a particular item, leave the cell blank.) Total Total Total Stockholders Transaction 2 Check my work March 1 Issue 2,800 shares of common stock for 559 per share. 15 Purchase 570 shares of treasury stock for $52 per share. July 10 Resell 370 shares of treasury stock purchased on May 15 for $57 per share. October 15 Issue 370 shares of preferred stock for $62 per share. December 1 Declare a cash dividend on both common and preferred stock of $2.20 per share to all stockholders of record on December 15. (Hint Dividends are not paid on treasury stock.) December 31 Pay the cash dividenda declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $470; Common Stock, $57. Additional Paid-in Capital, $84,500; and Retained Earnings, $33,900. Net Income for the year ended December 31, 2021, is $14,200. 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.) Total Assets Total Liabilities Total Stockholders Equity Transaction Issue common stock Purchase treasury stock Resell treasury stock Issue preferred stock Declare cash dividends Pay cash dividends Proy 2 of 10 !!! Next >
