Little League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 110,000 shares of common stock for $54 per share. February 14 Issue 44,000 shares of preferred stock for $12 per share. May 8 May 31 Purchase 11,000 shares of its own common stock for $44 per share. Resell 5,500 shares of treasury stock for $49 per share. December 1 Declare a cash dividend on its common stock of $0.45 per share and a $26,400 (6% 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: Determine the financial statement effects of each of these transactions 2024. Complete this question by entering your answers in the tabs below. January 02 February 14 May 08 May 31 December 1 December 15 December 30 Issue 110,000 shares of common stock for $54 per share. Note: Amounts to be deducted should be indicated by a minus sign. If there are no effects for a particular transaction/event, select "There are no financial statement effects" in the first account field. Balance Sheet Stockholders' Equity Assets Liabilities Contributed Capital Retained Earnings Treasury Stock Cash 5,940,000 Common Stock Additional Paid-in Capital Income Statement Revenues Expenses Net Income < January 02 February 14 >

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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Little League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2024, its first year of operations:

Little League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2024, its first year of operations:

January 2 Issue 110,000 shares of common stock for $54 per share.
February 14 Issue 44,000 shares of preferred stock for $12 per share.
May 8 Purchase 11,000 shares of its own common stock for $44 per share.
May 31 Resell 5,500 shares of treasury stock for $49 per share.
December 1 Declare a cash dividend on its common stock of $0.45 per share and a $26,400 (6% 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:

Determine the financial statement effects of each of these transactions 2024.

Note: Amounts to be deducted should be indicated by a minus sign. If there are no effects for a particular transaction/event, select "There are no financial statement effects" in the first account field.

 

Little League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions
affect stockholders' equity during 2024, its first year of operations:
January 2
Issue 110,000 shares of common stock for $54 per share.
February 14 Issue 44,000 shares of preferred stock for $12 per share.
May 8
May 31
Purchase 11,000 shares of its own common stock for $44 per share.
Resell 5,500 shares of treasury stock for $49 per share.
December 1 Declare a cash dividend on its common stock of $0.45 per share and a $26,400 (6% 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:
Determine the financial statement effects of each of these transactions 2024.
Complete this question by entering your answers in the tabs below.
January 02 February 14
May 08
May 31
December 1
December 15 December 30
Issue 110,000 shares of common stock for $54 per share.
Note: Amounts to be deducted should be indicated by a minus sign. If there are no effects for a particular transaction/event, select "There are no financial statement effects" in the first account field.
Balance Sheet
Stockholders' Equity
Assets
Liabilities
Contributed Capital
Retained Earnings
Treasury Stock
Cash
5,940,000
Common Stock
Additional Paid-in Capital
Income Statement
Revenues
Expenses
Net Income
< January 02
February 14 >
Transcribed Image Text:Little League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 110,000 shares of common stock for $54 per share. February 14 Issue 44,000 shares of preferred stock for $12 per share. May 8 May 31 Purchase 11,000 shares of its own common stock for $44 per share. Resell 5,500 shares of treasury stock for $49 per share. December 1 Declare a cash dividend on its common stock of $0.45 per share and a $26,400 (6% 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: Determine the financial statement effects of each of these transactions 2024. Complete this question by entering your answers in the tabs below. January 02 February 14 May 08 May 31 December 1 December 15 December 30 Issue 110,000 shares of common stock for $54 per share. Note: Amounts to be deducted should be indicated by a minus sign. If there are no effects for a particular transaction/event, select "There are no financial statement effects" in the first account field. Balance Sheet Stockholders' Equity Assets Liabilities Contributed Capital Retained Earnings Treasury Stock Cash 5,940,000 Common Stock Additional Paid-in Capital Income Statement Revenues Expenses Net Income < January 02 February 14 >
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