Question

Required information [The following information applies to the questions displayed below Major League Apparel has two classes of stock authorized: 4 % , $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: 2 Issue 120, 000 shares of common stock for $50 per share. January February 14 Issue 40,000 shares of preferred stock for $13 per share. May May December 8 Purchase 12,000 shares of its own common stock for $40 per share. 31 Resell 6,000 shares of treasury stock for $45 per share. 1 Declare a cash dividend on its common stock of $e.25 per share and a $16,eee (4% 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 30e Pay the cash dividends declared on December 1.

Answer 1

Kindly note that no entry will be passed on record date of dividend, that is, on December 15.

Major league Apparel Journal Account Title Title Dobit (6) I Credito Date 2021 Jan 02 6000,000 Cash (120,000 X 50) Poud in Capital Common frock (120,00081) (Being shores issued) EPPO, OUD 120,000 I cash (40.000X13) | 520,000 Pard. in Capital Preferred shock (10,000x10) iread stock illudl 120,000 400.000 1480,000 May & l Treaang stock Cean (40x1200) I ( Being truck purein wake) 480,000 (60C0A99) 04 31 1 Comin Powd in 299,000 30 000 240,000 u4,500 Dee! | Dividend Ergores Dividored Payablen Pol. nur Dividond Parable a nomen frock K 120,009 - 205116991)0.257 f Being Lividad do dore di 16,000 26,500 I 16000 28580 Dec 30 Dividend Payable a Pref. stove I Divid and loyable - Common stock cash Being dividend paid) 24,500

Answer 2

poop

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