Hansaben Required informationProblem 10-2B (Algo) Record equity transactions andindicate the effect on the balance sheet equation (LO10-2,10-3, 10-4, 10-5)[The following information applies to the questions displayed below.]Nautical has two classes of stock authorized: $10 par preferred, and $1par value common. As of the beginning of 2024, 100 shares ofpreferred stock and 2,000 shares of common stock have been issued.The following transactions affect stockholders' equity during 2024:March 1April 1June 1June 30August 1Issue 2,000 additional shares of common stock for$15 per share.Issue 200 additional shares of preferred stock for$30 per share.Declare a cash dividend on both common and preferredstock of $0.50 per share to all stockholders ofrecord on June 15.Pay the cash dividends declared on June 1.Purchase 200 shares of common treasury stock for $12per share.October 1 Reissue 100 shares of treasury stock purchased onAugust 1 for $14 per share.Nautical has the following beginning balances in its stockholders'equity accounts on January 1, 2024: Preferred Stock, $1,000; CommonStock, $2,000; Additional Paid-in Capital, $18,500; and RetainedEarnings, $10,500. Net income for the year ended December 31, 2024,is $7,150.

Journal entry:The monetary transaction of the business is recorded in the books of accounts called…

Problem 10-2B (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2024, 100 shares of preferred stock and 2,000 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: