National League Gear has two classes of stock authorized: 6%, $20 par preferred, and $5 par value common. The following transactions affect stockholders’ equity during 2021, National League’s first year of operations: February 2 Issue 1.3 million shares of common stock for $28 per share. February 4 Issue 530,000 shares of preferred stock for $22 per share. June 15 Purchase 130,000 shares of its own common stock for $23 per share. August 15 Resell 97,500 shares of treasury stock for $38 per share. November 1 Declare a cash dividend on its common stock of $1.30 per share and a $636,000 (6% 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. Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the issuance of 1.30 million shares of common stock for $28 per share. Date General Journal Debit Credit February 02, 2021 Record the issuance of 530,000 shares of preferred stock for $22 per share. Date General Journal Debit Credit February 04, 2021 Record the purchase of 130,000 shares of its own common stock for $23 per share. Date General Journal Debit Credit June 15, 2021 Record the resell 97,500 shares of treasury stock for $38 per share. Date General Journal Debit Credit August 15, 2021 Record the declaration of a cash dividend on its common stock of $1.30 per share and a $636,000 (6% 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.) Date General Journal Debit Credit November 01, 2021 Date General Journal Debit Credit November 01, 2021 Date General Journal Debit Credit November 01, 2021 Record the dividends declared on November 1. Date General Journal Debit Credit November 30, 2021

National League Gear has two classes of stock authorized: 6%, $20 par preferred, and $5 par value common. The following transactions affect stockholders’ equity during 2021, National League’s first year of operations: February 2 Issue 1.3 million shares of common stock for $28 per share. February 4 Issue 530,000 shares of preferred stock for $22 per share. June 15 Purchase 130,000 shares of its own common stock for $23 per share. August 15 Resell 97,500 shares of treasury stock for $38 per share. November 1 Declare a cash dividend on its common stock of $1.30 per share and a $636,000 (6% 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. Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the issuance of 1.30 million shares of common stock for $28 per share. Date General Journal Debit Credit February 02, 2021 Record the issuance of 530,000 shares of preferred stock for $22 per share. Date General Journal Debit Credit February 04, 2021 Record the purchase of 130,000 shares of its own common stock for $23 per share. Date General Journal Debit Credit June 15, 2021 Record the resell 97,500 shares of treasury stock for $38 per share. Date General Journal Debit Credit August 15, 2021 Record the declaration of a cash dividend on its common stock of $1.30 per share and a $636,000 (6% 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.) Date General Journal Debit Credit November 01, 2021 Date General Journal Debit Credit November 01, 2021 Date General Journal Debit Credit November 01, 2021 Record the dividends declared on November 1. Date General Journal Debit Credit November 30, 2021

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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February	2	Issue 1.3 million shares of common stock for $28 per share.
February	4	Issue 530,000 shares of preferred stock for $22 per share.
June	15	Purchase 130,000 shares of its own common stock for $23 per share.
August	15	Resell 97,500 shares of treasury stock for $38 per share.
November	1	Declare a cash dividend on its common stock of $1.30 per share and a $636,000 (6% 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.

Required:

1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Record the issuance of 1.30 million shares of common stock for $28 per share.

Date	General Journal	Debit	Credit
February 02, 2021

Record the issuance of 530,000 shares of preferred stock for $22 per share.

Date	General Journal	Debit	Credit
February 04, 2021

Record the purchase of 130,000 shares of its own common stock for $23 per share.

Date	General Journal	Debit	Credit
June 15, 2021

Record the resell 97,500 shares of treasury stock for $38 per share.

Date	General Journal	Debit	Credit
August 15, 2021

Record the declaration of a cash dividend on its common stock of $1.30 per share and a $636,000 (6% 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.)

Date	General Journal	Debit	Credit
November 01, 2021

Date	General Journal	Debit	Credit
November 01, 2021

Date	General Journal	Debit	Credit
November 01, 2021

Record the dividends declared on November 1.

Date	General Journal	Debit	Credit
November 30, 2021

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