Required information [The following information applies to the questions displayed below) Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issue 110,000 shares of common stock for $51 per share. February 14 Issue 41,000 shares of preferred stock for $12 per share. May 8 Purchase 11,000 shares of its own common stock for $41 per share. May 31 Resell 5,500 shares of treasury stock for $46 per share. December 1 Declare a cash dividend on its common stock of $0.30 per share and a $2,600 (68 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.) View transaction list View journal entry worksheet Credit I No 1 Debit 5.610.000 Date General Journal January 02, 2021 Cash Common Stock Additional Paid-in Capital 110,000 5,500,000 2 February 14, 2021 Cash View transaction ist View journal entry worksheet Credit No 1 Debit 5,610,000 Date General Journal January 02, 2021 Cash Common Stock Additional Paid-In Capital 110,000 5,500,000 2 February 14, 2021 Cash Preferred Stock Additional Paid-In Capital May 08, 2021 451,000 Treasury Stock Cash 451.000 May 31, 2021 253,000 Cash Treasury Stock Additional Paid-In Capital 225,500 27,500 December 01, 2021 Dividends Dividends Payable December 15, 2021 No Journal Entry Required December 30, 2021 Dividends Payable Dividende JE U LORTUE 1 POE Share. 31 Resell 5,500 shares of treasury stock for $46 per share. December 1 Declare a cash dividend on its common stock of $0.30 per share and a $24,600 (61 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. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $471,000. (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 I Additional Paid-in Capital 110.000 110,000 Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity $ 110,000
