**Stock Transactions and Equity Section Preparation****Stock Transactions:**1. **January 2**: Issued 120,000 shares of common stock at $50 per share.2. **February 14**: Issued 40,000 shares of preferred stock at $13 per share.3. **May 8**: Purchased 12,000 shares of its own common stock at $40 per share.4. **May 31**: Resold 6,000 shares of treasury stock at $45 per share.5. **December 1**: Declared a cash dividend on common stock of $0.25 per share and a $16,000 (4% of par value) cash dividend on its preferred stock to be paid to all stockholders of record on December 15, payable on December 30. (Hint: Dividends are not paid on treasury stock). 6. **December 30**: Paid the cash dividends declared on December 1.**Stockholders' Equity Section Preparation:**Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $470,000. (Amounts to be deducted should be indicated by a minus sign.)**Balance Sheet (Stockholders' Equity Section)**- **Date:** December 31, 2021- **Company:** Major League Apparel1. **Stockholders' Equity:** - [Common Stock] - [Preferred Stock] - [Treasury Stock, if applicable] - [Additional Paid-in Capital]2. **Total Paid-in Capital** 3. **Total Stockholders' Equity**Note: The specific details of each component in the stockholders' equity section need to be calculated based on the transactions and are not provided in the image. Proper balancing of these elements will reflect the company's financial position at the end of the year. **Image Transcription for Educational Website**---**Events:**- **February 2:** Issue 1.5 million shares of common stock for $15 per share.- **February 4:** Issue 400,000 shares of preferred stock for $24 per share.- **June 15:** Purchase 150,000 shares of its own common stock for $10 per share.- **August 15:** Resell 112,500 shares of treasury stock for $25 per share.- **November 1:** Declare a cash dividend on its common stock of $1.50 per share and a $400,000 (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.---**Task:**2. **Prepare the stockholders' equity section of the balance sheet as of December 31, 2021.** - Net income for the year was $4,700,000. - *(Amounts to be deducted should be indicated by a minus sign.)*---**National League Gear****Balance Sheet***(Stockholders' Equity Section)***December 31, 2021**- **Stockholders' equity:** - [Details to be filled]- **Total paid-in capital:** - [Details to be filled]- **Total stockholders' equity:** - [Details to be filled] ---This section will help you understand the preparations needed for the stockholders' equity section of a financial statement, focusing on transactions and their impacts recorded during 2021.

"We’ll answer the first question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered."The balance sheet is one of the important financial statements of the business, which includes the stockholders' equity section on liabilities side. MAJOR LEAGUE APPAREL Balance sheet (Stockholders’ equity Section) December 31, 2021 Stockholders’ equity Common stock capital (Issued 120,000 shares @ $50) $6,000,000 Preferred share capital (Issued 40,000 shares @ $10) 400,000 Share premium- preference shares 120,000 Share premium- treasury stock 30,000 Total paid in capital 6,550,000 Retained earnings (470,000 – 44,500) 425,500 Less: Treasury stock (240,000) Total stockholders’ equity 6,735,500