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 Issue 1.4 million shares of common stock for $34 per share. February 4 June 15 August 15 November 1 Issue 590,000 shares of preferred stock for $22 per share. Purchase 140,000 shares of its own common stock for $29 per share. Resell 105,000 shares of treasury stock for $44 per share. Declare a cash dividend on its common stock of $1.40 per share and a $708,000 (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.) November 30 Pay the dividends declared on November 1.
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 Issue 1.4 million shares of common stock for $34 per share. February 4 June 15 August 15 November 1 Issue 590,000 shares of preferred stock for $22 per share. Purchase 140,000 shares of its own common stock for $29 per share. Resell 105,000 shares of treasury stock for $44 per share. Declare a cash dividend on its common stock of $1.40 per share and a $708,000 (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.) November 30 Pay the dividends declared on November 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 1.4 million shares of common stock for $34 per share.
Issue 590,000 shares of preferred stock for $22 per share.
Purchase 140,000 shares of its own common stock for $29 per share.
Resell 105,000 shares of treasury stock for $44 per share.
Declare a cash dividend on its common stock of $1.40 per share and a $708,000 (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.)
November 30 Pay the dividends declared on November 1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71b82b19-0193-4355-bffd-2f22bedfd372%2Fb71e805c-b829-4eb7-9681-eefc94e34313%2Fgwcqnkw_processed.png&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 1.4 million shares of common stock for $34 per share.
Issue 590,000 shares of preferred stock for $22 per share.
Purchase 140,000 shares of its own common stock for $29 per share.
Resell 105,000 shares of treasury stock for $44 per share.
Declare a cash dividend on its common stock of $1.40 per share and a $708,000 (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.)
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 $4,890,000.
(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
Total Stockholders' Equity
$
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71b82b19-0193-4355-bffd-2f22bedfd372%2Fb71e805c-b829-4eb7-9681-eefc94e34313%2Fi3jqeh_processed.png&w=3840&q=75)
Transcribed Image Text:2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $4,890,000.
(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
Total Stockholders' Equity
$
0
0
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