Major League Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2021, its first year of operations: January 2 Issue 120,000 shares of common stock for $68 per share.February 14 Issue 58,000 shares of preferred stock for $13 per share.May 8 Purchase 12,000 shares of its own common stock for $58 per share.May 31 Resell 6,000 shares of treasury stock for $63 per share.December 1 Declare a cash dividend on its common stock of $0.35 per share and a $23,200 (4% 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. Problem 10-6A Part 1Required: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.)

When treasury shares are reissued it should be credited to treasury shares account at…

Answered: Major League Apparel has two classes of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Major League Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2021, its first year of operations:

January	2	Issue 120,000 shares of common stock for $68 per share.
February	14	Issue 58,000 shares of preferred stock for $13 per share.
May	8	Purchase 12,000 shares of its own common stock for $58 per share.
May	31	Resell 6,000 shares of treasury stock for $63 per share.
December	1	Declare a cash dividend on its common stock of $0.35 per share and a $23,200 (4% 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.

Problem 10-6A Part 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.)

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