Required information Problem 10-6A 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.] 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 120,000 shares of common stock for $53 per share. February 14 Issue 43,000 shares of preferred stock for $13 per share. May ces May 8 Purchase 12,000 shares of its own common stock for $43 per share. 31 Renell 6,000 shares of treasury stock for $48 per share. December 1 Declare a canh dividend on its common stock of $0.40 per share and a $17,200 (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 Part 1 Journal entry worksheet < 1 2 3 5 6 7 Record the declaration of a cash dividend on its common stock of $0.40 per share and a $17,200 (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.) Note: Enter debits before credits. Date December 01, 2021 General Journal Debit Credit View general journal Record entry Clear entry Prev 1 2 of 2 Next Journal entry worksheet < 2 3 6 7 Record the payment of the cash dividends declared on December 1. Note: Enter debits before credits. Date General Journal Debit Credit December 30, 2021 Dividends Payable Cash Record entry Clear entry View general journal Problem 10-6A Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $473,000. (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Total Paid-in Capital 0 Total Stockholders' Equity $ 0