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Required information Problem 10-6B 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

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Required information Problem 10-6B 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.) National League Gear has two classes of stock authorized 5%, $20 par preferred, and $5 par value common. The following transactions affect stockholders' equity during 2021, National League's first year of operations: February 2 Issue 1.3 million shares of common stock for $33 per share. February 4 Issue 580,000 shares of preferred stock for $24 per share. June 15 Purchase 130,000 shares of its own common stock for $28 per share. August 15 Resell 97,500 shares of treasury stock for $43 per share. November 1 Declare a cash dividend on its common stock of $1.30 per share and a $580,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends are not paid on treasury stock.) November 30 Pay the dividends declared on November 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 Net income for the year was $4,880,000 (Amounts to be deducted should be indicated by a minus sign.) NATIONAL LEAGUE GEAR Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity Total pald-in capital Total stockholders' equity Required information Problem 10-6B 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.) National League Gear has two classes of stock authorized 5%, $20 par preferred, and $5 par value common. The following transactions affect stockholders' equity during 2021, National League's first year of operations: February 2 Issue 1.3 million shares of common stock for $33 per share. February 4 Issue 580,000 shares of preferred stock for $24 per share. June 15 Purchase 130,000 shares of its own common stock for $28 per share. August 15 Resell 97,500 shares of treasury stock for $43 per share. November 1 Declare a cash dividend on its common stock of $1.30 per share and a $580,000 (5% of par value) cash dividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends are not paid on treasury stock.) November 30 Pay the dividends declared on November 1. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021 Net income for the year was $4,880,000 (Amounts to be deducted should be indicated by a minus sign.) NATIONAL LEAGUE GEAR Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' equity Total pald-in capital Total stockholders' equity

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