Do not give answer in image Required Information[The following information applies to the questions displayed below]National League Gear has two classes of stock authorized 4%, $20 par preferred, and $5 par value common. Thefollowing transactions affect stockholders' equity during 2024, National League's first year of operationsFebruary 2 Issue 1.3 million shares of common stock for $22 per share.Issue 470,000 shares of preferred stock for $23 per share.February 4June 15Purchase 130,000 shares of its own common stock for $17 per share.Resell 97,500 shares of treasury stock for $32 per share.August 15November 1Declare a cash dividend on its common stock of $1.30 per share and a $376,000 (4% of par value) cashdividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends arenot 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 $4,770,000(Amounts to be deducted should be indicated by a minus sign.)National League GearBalance Sheet(Stockholders' Equity Section).December 31, 2024Stockholders' EquityCommon StockPreferred StockAdditional Paid-in CapitalTotal Paid-in CapitalRetained EarningsTreasury StockTotal Stockholders' Equity$6.500.0009,400,00024,972,50040872.5003.122.250(552 500)$ 43,442,250 Required:1. Record each of these transactions (If no entry is required for a transaction/event, select "No Journal Entry Required" In the firstaccount field.)1Required Information[The following information applies to the questions displayed below]National League Gear has two classes of stock authorized 4%, $20 par preferred, and $5 par value common Thefollowing transactions affect stockholders' equity during 2024, National League's first year of operationsView transaction lit View journal entry worksheetDateFebruary 02, 2024 Cash/February 2 Issue 1.3 million shares of common stock for $22 per share.Issue 470,000 shares of preferred stock for $23 per share.February 4June 15Purchase 130,000 shares of its own common stock for $17 per share.Resell 97,500 shares of treasury stock for $32 per share.August 15November 1Declare a cash dividend on its common stock of $1.30 per share and a $376,000 (4% of par value) cashdividend on its preferred stock payable to all stockholders of record on November 15. (Hint: Dividends arenot paid on treasury stock.)November 30 Pay the dividends declared on November 1.7No1234February 04, 2024 CashJune 15, 2024Common StockAdditional Paid in CapitalPreferred StockAdditional Paid in CapitalTreasury StockCashGeneral JournalAugust 15, 2024 CashTreasury StockDebit28,600.00010.010,0002210.0003,120.000Credit6,500,00022,100,0009.400.0001.410.0002.210,0001.657.500

Journal Entry is the primary step to record the transaction in the books of accounts. The increase…

Required Information [The following information applies to the questions displayed below] National League Gear has two classes of stock authorized: 4%, $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 1.3 million shares of common stock for $22 per share. Issue 470,000 shares of preferred stock for $23 per share. Purchase 130,000 shares of its own common stock for $17 per share. Resell 97,500 shares of treasury stock for $32 per share. Declare a cash dividend on its common stock of $1.30 per share and a $376,000 (4% 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 $4,770,000 (Amounts to be deducted should be indicated by a minus sign.) National League Gear Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity Common Stock Preferred Stock Additional Paid-in Capital Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity $6.500.000 9.400.000 24,972.500 40,672.500 3.122.250 (552 500) $ 43,442 250

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q