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 $50 per share. February 14 Issue 40,000 shares of preferred stock for $13 per share. May 8 May 31 Purchase 12,000 shares of its own common stock for $40 per share. Resell 6,000 shares of treasury stock for $45 per share. December 1 Declare a cash dividend on its common stock of $0.25 per share and a $16,000 (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 (Algo) Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $470,000. (Amounts to be deducted should be indicated by a minus sign.) TENNIS APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Problem 10-6A (Algo) Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $470,000. (Amounts to be deducted should be indicated by a minus sign.) TENNIS APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Total Paid-in Capital 0 Total Stockholders' Equity $ 0