Required information The following information applies to the questions displayed below) Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 400 shores of preferred stock and 5,000 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: May March 1 Issue 2,100 shares of common stock for $52 per share. 15 Purchase 500 shares of treasury stock for 545 per share. July 10 Resell 300 shares of treasury stock purchased on May 15 for $50 per share. October 15 Issue 300 shares of preferred stock for $55 per share. December 1 Declare a cash dividend on both common and preferred stock of $1.50 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $400, Common Stock, $50. Additional Paid-in Capital, $81,000 and Retained Earnings. $32,500. Net income for the year ended December 31, 2021, is $12,800. Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Credit Date March 01, 2021 Answer is complete but not entirely correct. General Journal Debit Cash 109 200 Common Stock Additional Paid-in Capital 1 OOO 21 109,179 2 0 May 15, 2021 22.500 Treasury Stock Cash 22,500 3 July 10, 2021 15,000 Cash Treasury Stock Additional Paid-in Capital 13,500 OO 1.500 4 16,500 $ October 15, 2021 Cash Preferred Stock Additional Paid-in Capital 300 16.200 5 11.400 December 01, 202 Retained Earnings Dividends Payable 11.400 6 December 15, 202 No Journal Entry Required > 51400 7 December 31, 202 Dividends Payable Cash 11.400 ! Required information [The following information applies to the questions displayed below.) Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 400 shares of preferred stock and 5,000 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,100 shares of common stock for $52 per share. May 15 Purchase 500 shares of treasury stock for $45 per share. July 10 Resell 300 shares of treasury stock purchased on May 15 for $50 per share. October 15 Issue 300 shares of preferred stock for $55 per share. December 1 Declare a cash dividend on both common and preferred stock of $1.50 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock, $400; Common Stock, $50; Additional Pald-in Capital, $81,000; and Retained Earnings $32,500. Net income for the year ended December 31, 2021, is $12,800. 2. Select whether each of the following transactions increases (+) or decreases ( - ) total assets, total abilities, and total stockholders' equity. (If none of the categories apply for a particular Item, leave the cell blank.) Transaction Total Assets Total Liabilities Total Stockholders Equity Issue common stock Purchase treasury stock Resell treasury stock Issue preferred stock Declare cash dividends Pay cash dividends Required information [The following information applies to the questions displayed below.) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split. Required: 1. Complete the following table comparing the effects of a 100% stock dividend versus a 2-for-1 stock split on the stockholders' equity accounts, shares outstanding, par value and share price. (Round "Par value per share" to 2 decimal places.) Common stock, $1 par value Additional paid-in capital Total paid-in capital Retained earnings Total stockholders' equity Shares outstanding Par value per share Share price After 100% Before Stock After 2-for-1 Stock Split Dividend $ 1.100 $ 2,200 $ 1,100 53,000 43,000 43,000 54.100 45,200 44,100 23.250 21,150 22.250 $ 77,350 66,350 $ 66,350 1,100 2.200 2,200 $ 1.00 $ 1.001 s 50.00 $ 1187 $ 49 $ 49 Required information [The following information applies to the questions displayed below.) Sammy's Sportshops has been very profitable in recent years and has seen its stock price steadily increase to over $100 per share. The CFO thinks the company should consider either a 100% stock dividend or a 2-for-1 stock split 2. The primary reason companies declare a large stock dividend or a stock split is to lower the trading price of the stock to a more acceptable trading range, making it attractive to a larger number of potential investors. True or False True False