Required information [The following information applies to the questions displayed below] 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 4 February 2 Issue 1.0 million shares of common stock for $25 per share. Issue 500,000 shares of preferred stock for $22 per share.. Purchase 100,000 shares of its own common stock for $20 per share. Resell 75,000 shares of treasury stock for $35 per share. Declare a cash dividend on its common stock of $1.00 per share and a $600,000 (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.) June 15 August 15 November 1 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 $4,800,000. (Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Preferred Stock Common Stock Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholdere Fritu $10,000,000 5,000,000 15,000,000 $15.000.000
Required information [The following information applies to the questions displayed below] 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 4 February 2 Issue 1.0 million shares of common stock for $25 per share. Issue 500,000 shares of preferred stock for $22 per share.. Purchase 100,000 shares of its own common stock for $20 per share. Resell 75,000 shares of treasury stock for $35 per share. Declare a cash dividend on its common stock of $1.00 per share and a $600,000 (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.) June 15 August 15 November 1 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 $4,800,000. (Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity: Preferred Stock Common Stock Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholdere Fritu $10,000,000 5,000,000 15,000,000 $15.000.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A5
![Required information
[The following information applies to the questions displayed below]
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
February 4
June 15
August 15
November 1
Issue 1.0 million shares of common stock for $25 per share.
Issue 500,000 shares of preferred stock for $22 per share.
Purchase 100,000 shares of its own common stock for $20 per share.
Resell 75,000 shares of treasury stock for $35 per share.
Declare a cash dividend on its common stock of $1.00 per share and a $600,eee (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 $4,800,000.
(Amounts to be deducted should be indicated by a minus sign.)
National League Gear
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Preferred Stock
Common Stock
Total Paid-in Capital
Retained Earnings
Treasury Stock
Total Sinkhnilare F
$10,000,000
5,000,000
15,000,000
$15.000.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F30a4b520-d508-47bb-8835-1b3546b51614%2F88ed6141-a1cd-4c87-a694-cd772bb7b05e%2Fbfd45ci_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below]
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
February 4
June 15
August 15
November 1
Issue 1.0 million shares of common stock for $25 per share.
Issue 500,000 shares of preferred stock for $22 per share.
Purchase 100,000 shares of its own common stock for $20 per share.
Resell 75,000 shares of treasury stock for $35 per share.
Declare a cash dividend on its common stock of $1.00 per share and a $600,eee (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 $4,800,000.
(Amounts to be deducted should be indicated by a minus sign.)
National League Gear
Balance Sheet
(Stockholders' Equity Section)
December 31, 2024
Stockholders' Equity:
Preferred Stock
Common Stock
Total Paid-in Capital
Retained Earnings
Treasury Stock
Total Sinkhnilare F
$10,000,000
5,000,000
15,000,000
$15.000.000
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