Required Information Problem 10-6A Record equity transactions and prepare the stockholders' equity section (L010-2, 10-3, 10- 4, 10-5, 10-77 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 $65 per share. February 14 Issue 55,000 shares of preferred stock for $13 per share. May Purchase 12,000 shares of its own common stock for $55 per share May 31 Resell 6,000 shares of treasury stock for $60 per share. December Declare a cash dividend on its common stock of $0.75 per share and a $22,000 (41 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 stook.) December 30 Pay the cash dividends declared on December 1. 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 $485,000. (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity Preferred Stock Common Stock Additional Paid-in Capital Total Paid-in Capital Retained Eamings Treasury Stock Total Stockholders' Equity