Required information Problem 10-6A Record equity transactions and prepare the stockholders' equity section (L010-2, 10-3, 10- 4. 10-5, 10-7) [The following information applies to the questions displayed below) Major League Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021. Its first year of operations: January 2 Issue 120,eee shares of common stock for $59 per share. February 14 Issue 49,000 shares of preferred stock for $13 per share. May 8 Purchase 12,000 shares of its own common stock for $49 per share. 31 Resell 6,000 shares of treasury stock for $54 per share December 1 Declare a cash dividend on its common stock of $8.55 per share and a $19,680 (4% of par value) cash div end on its preferred stock 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. May Problem 10-6A Part 1 Required: 1. Record each of these transactions. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) No Date General Journal Dobit Credit Required information No Debit Credit 1 7,800,000 Date General Journal January 02, 2021 Cash Common Stock Additional Paid In Capital 120,000 7,800,000 2 February 14, 2021 Cash Preferred Stock Additional Pald-in Capital OO 715,000 dod 550,000 165,000 May 08, 2021 Treasury Stock 660,000 Cash 660,000 4 May 31, 2021 360,000 Cash Treasury Stock Additional Pald-in Capital 330,000 30,000 5 107,500 December 01, 202 Dividends Dividends Payable 107,500 December 15, 202 No Journal Entry Required 7 107,500 December 30, 202 Dividends Payable Cash 107,500 X at 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $479,000 (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Common Stock $ Additional Paid in Capital Additional Paid-in Capital Additional Paid in Capital Total Pald-in Capital Retained Earnings Treasury Stock 120,000 7,680,000 165,000 30,000 7,995,000 377,500 (330,000) Total Stockholders' Equity S 8,042,500