7 J eBook Print References Little League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 100,000 shares of common stock for $60 per share. February 14 Issue 50,000 shares of preferred stock for $11 per share. May 8 May 31 December 1 Declare a cash dividend on its common stock of $0.50 per share and a $25,000 (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. Purchase 10,000 shares of its own common stock for $50 per share. Resell 5,000 shares of treasury stock for $55 per share. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $480,000. Amounts to be deducted should be indicated by a minus sign.) LITTLE LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Preferred Stock Common Stock Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity $ $ 500,000 100,000 600,000 407,500 5,700,000 6,707,500
7 J eBook Print References Little League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 100,000 shares of common stock for $60 per share. February 14 Issue 50,000 shares of preferred stock for $11 per share. May 8 May 31 December 1 Declare a cash dividend on its common stock of $0.50 per share and a $25,000 (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. Purchase 10,000 shares of its own common stock for $50 per share. Resell 5,000 shares of treasury stock for $55 per share. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $480,000. Amounts to be deducted should be indicated by a minus sign.) LITTLE LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Preferred Stock Common Stock Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity $ $ 500,000 100,000 600,000 407,500 5,700,000 6,707,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Little League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following
transactions affect stockholders' equity during 2024, its first year of operations:
Issue 100,000 shares of common stock for $60 per share.
Issue 50,000 shares of preferred stock for $11 per share.
Purchase 10,000 shares of its own common stock for $50 per share.
Resell 5,000 shares of treasury stock for $55 per share.
Declare a cash dividend on its common stock of $0.50 per share and a $25,000 (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.
January 2
February 14
May 8
May 31
December 1
2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $480,000.
(Amounts to be deducted should be indicated by a minus sign.)
LITTLE LEAGUE APPAREL
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Preferred Stock
Common Stock
Total Paid-in Capital
Retained Earnings
Treasury Stock
Total Stockholders' Equity
$
$
500,000
100,000
600,000
407,500
5,700,000
6,707,500
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