Required information Problem 10-6A (Algo) Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7) [The following information applies to the questions displayed below.] Little League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 100,000 shares of common stock for $69 per share. February 14 Issue 59,000 shares of preferred stock for $11 per share. May 8 Purchase 10,000 shares of its own common stock for $59 per share. May 31 Resell 5,000 shares of treasury stock for $64 per share. December 1 Declare a cash dividend on its common stock of $0.30 per share and a $29,500 (5% 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 (Algo) Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $489,000.
Required information Problem 10-6A (Algo) Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7) [The following information applies to the questions displayed below.] Little League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 100,000 shares of common stock for $69 per share. February 14 Issue 59,000 shares of preferred stock for $11 per share. May 8 Purchase 10,000 shares of its own common stock for $59 per share. May 31 Resell 5,000 shares of treasury stock for $64 per share. December 1 Declare a cash dividend on its common stock of $0.30 per share and a $29,500 (5% 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 (Algo) Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $489,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Problem 10-6A (Algo) Record equity transactions and prepare the stockholders' equity section (LO10-2,
10-3, 10-4, 10-5, 10-7)
[The following information applies to the questions displayed below.]
Little League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following
transactions affect stockholders' equity during 2024, its first year of operations:
January 2 Issue 100,000 shares of common stock for $69 per share.
February 14 Issue 59,000 shares of preferred stock for $11 per share.
May 8
May 31
December 1
Purchase 10,000 shares of its own common stock for $59 per share.
Resell 5,000 shares of treasury stock for $64 per share.
Declare a cash dividend on its common stock of $0.30 per share and a $29,500 (5% 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 (Algo) Part 2
2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $489,000.
(Amounts to be deducted should be indicated by a minus sign.)
LITTLE LEAGUE APPAREL
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Total Paid-in Capital
Total Stockholders' Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab13e4c-80d5-4ab7-971b-8db88e33234e%2F2825960d-a8eb-4161-a429-56ee2e443648%2Frsbcckq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 10-6A (Algo) Record equity transactions and prepare the stockholders' equity section (LO10-2,
10-3, 10-4, 10-5, 10-7)
[The following information applies to the questions displayed below.]
Little League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following
transactions affect stockholders' equity during 2024, its first year of operations:
January 2 Issue 100,000 shares of common stock for $69 per share.
February 14 Issue 59,000 shares of preferred stock for $11 per share.
May 8
May 31
December 1
Purchase 10,000 shares of its own common stock for $59 per share.
Resell 5,000 shares of treasury stock for $64 per share.
Declare a cash dividend on its common stock of $0.30 per share and a $29,500 (5% 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 (Algo) Part 2
2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $489,000.
(Amounts to be deducted should be indicated by a minus sign.)
LITTLE LEAGUE APPAREL
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Total Paid-in Capital
Total Stockholders' Equity
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