]

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 applies to the questions displayed below.] Tennis Apparel has two classes of stock authorized: 4\%, \$10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, 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 Resel1 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 $18,400 (4s 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. (Bint; Dividends are not paid on treasury stock.) December 30 Pay the cash dividends declared on December 1. Record the issuance of 46,000 shares of preferred stock for $13 per share. Record the purchase of 12,000 shares of its own common stock for $46 per share. Record the resale of 6,000 shares of treasury stock for $51 per share. Record the issuance of 120,000 shares of common stock for $56 per share. Record the declaration of a cash dividend on its common stock of $0.70 per share and a $18,400 (4\% 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.) Record the payment of the cash dividends declared on December 1. Record the entry on December 15, the date of record