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Required information Skip to question [The following information applies to the questions displayed below.] Major League Apparel has two classes of stock authorized: 5%, $10
Required information
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[The following information applies to the questions displayed below.]
Major League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders equity during 2021, its first year of operations:
January 2 Issue 100,000 shares of common stock for $52 per share.
February 14 Issue 42,000 shares of preferred stock for $11 per share.
May 8 Purchase 10,000 shares of its own common stock for $42 per share.
May 31 Resell 5,000 shares of treasury stock for $47 per share.
December 1 Declare a cash dividend on its common stock of $0.35 per share and a $21,000 (5% 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.
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.)
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