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 2024, National League's first year of operations: February 2 Issue 1.5 million shares of common stock for $35 per share. February 4 Issue 600,000 shares of preferred stock for $23 per share. June 15 August 15 November 1 Purchase 150,000 shares of its own common stock for $30 per share. Resell 112,500 shares of treasury stock for $45 per share. Declare a cash dividend on its common stock of $1.50 per share and a $480,000 (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. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,900,000. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Common Stock Preferred Stock $ 7,500,000 8,000,000

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 57E: Outstanding Stock Lars Corporation shows the following information in the stockholders equity...
icon
Related questions
Question

please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste answer in proper format

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 2024, National League's first year of operations:
February 2 Issue 1.5 million shares of common stock for $35 per share.
February 4 Issue 600,000 shares of preferred stock for $23 per share.
June 15
August 15
November 1
Purchase 150,000 shares of its own common stock for $30 per share.
Resell 112,500 shares of treasury stock for $45 per share.
Declare a cash dividend on its common stock of $1.50 per share and a $480,000 (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.
2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,900,000.
(Amounts to be deducted should be indicated by a minus sign.)
Answer is complete but not entirely correct.
National League Gear
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Common Stock
Preferred Stock
$ 7,500,000
8,000,000
Transcribed Image Text: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 2024, National League's first year of operations: February 2 Issue 1.5 million shares of common stock for $35 per share. February 4 Issue 600,000 shares of preferred stock for $23 per share. June 15 August 15 November 1 Purchase 150,000 shares of its own common stock for $30 per share. Resell 112,500 shares of treasury stock for $45 per share. Declare a cash dividend on its common stock of $1.50 per share and a $480,000 (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. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,900,000. (Amounts to be deducted should be indicated by a minus sign.) Answer is complete but not entirely correct. National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Common Stock Preferred Stock $ 7,500,000 8,000,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage