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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 2024, National League's first year of operations: February 2 Issue 1.2 million shares of common stock for $23 per share. Issue 480,000 shares of preferred stock for $22 per share. February 4 June 15 August 15 November 1 Purchase 120,000 shares of its own common stock for $18 per share. Resell 90,000 shares of treasury stock for $33 per Share. Declare a cash dividend on its common stock of $1.20 per share and a $576,008 (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. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,780,0 Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet

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 2024, National League's first year of operations: February 2 Issue 1.2 million shares of common stock for $23 per share. Issue 480,000 shares of preferred stock for $22 per share. February 4 June 15 August 15 November 1 Purchase 120,000 shares of its own common stock for $18 per share. Resell 90,000 shares of treasury stock for $33 per Share. Declare a cash dividend on its common stock of $1.20 per share and a $576,008 (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. 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,780,0 Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet

FINANCIAL ACCOUNTING
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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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 2024, National League's first year of operations: February 2 Issue 1.2 million shares of common stock for $23 per share. Issue 480,000 shares of preferred stock for $22 per share. February 4 Purchase 120,000 shares of its own common stock for $18 per share. Resell 90,000 shares of treasury stock for $33 per Share. Declare a cash dividend on its common stock of $1.20 per share and a $576,008 (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. June 15 August 15 November 1 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,780,000. (Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity Total Paid-in Capital
Transcribed Image Text: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 2024, National League's first year of operations: February 2 Issue 1.2 million shares of common stock for $23 per share. Issue 480,000 shares of preferred stock for $22 per share. February 4 Purchase 120,000 shares of its own common stock for $18 per share. Resell 90,000 shares of treasury stock for $33 per Share. Declare a cash dividend on its common stock of $1.20 per share and a $576,008 (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. June 15 August 15 November 1 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,780,000. (Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity Total Paid-in Capital
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