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Required information [The following information applies to the questions displayed below.] National League Gear has two classes of stock authorized: 4%, $20 par preferred, and
Required information
[The following information applies to the questions displayed below.]
National League Gear has two classes of stock authorized: 4%, $20 par preferred, and $5 par value common. The following transactions affect stockholders equity during 2021, National Leagues first year of operations:
February | 2 | Issue 1.2 million shares of common stock for $32 per share. | |
February | 4 | Issue 570,000 shares of preferred stock for $23 per share. | |
June | 15 | Purchase 120,000 shares of its own common stock for $27 per share. | |
August | 15 | Resell 90,000 shares of treasury stock for $42 per share. | |
November | 1 | Declare a cash dividend on its common stock of $1.20 per share and a $456,000 (4% 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. |
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.)
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