Question

pter 10 Homework Donnte Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 490 shares of preferred stock and 5.900 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021 March 1 T ue 3,000 shares of common stock for $61 per share. 15 Purchase 590 shares of treasury stock for $84 per share July e Resell 390 shares of treasury stock purchased on May 15 for 559 per share October 15 to 200 o referred stock for $64 per share December 1 Declare cash dividend on both command preferred stock of $2.40 per Share to all stockholders of record on December 15. Hint Dividends are not paid on treasury stock.) December 3 pay the cash dividends declared on December 1 Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021 Preferred Stock $490. Common Stock. $59: Additional Pald-in Capital. $85.500; and Retained Earnings, $34.300. Net income for the year onded December 31, 2021. $14,600 Required: 1. Record each of these transactions. (if no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transactions Journal entry worksheet < o o o o o o Record the declaration of a cash dividend on both common and preferred stock of $2.40 per share to all stockholders. (Hint: Dividends are not paid on treasury stock.) tests before ebit Credit December 01, 2021 Dividends Nidends Payab

Answer 1

Date		Account titles and explanation		Debit(in $)	Credit(in $)
	Mar-01	Cash(3,000 shares*$61)		183000
		Common stock(3,000 shares*$0.01)			30
		Paid-in capital in excess of par value-common			182970
	May-15	Treasury stock(590 shares*$54)		31860
		Cash			31860
	Jul-10	Cash(390 shares*$59)		23010
		Treasury stock(390 shares*$54)			21060
		Paid in capital on sale of treasury stock			1950
	Oct-15	Cash(390 shares*$64)		24960
		Prefered stock(390 sahres*$1)			390
		Paid-in capital in excess of par value-Prefered			24570
	Dec-01	Retained earnings		22992
		Dividend payable			22992
	Dec-31	Dividend payable		22992
		Cash			22992
		Note:
		prefered shares outstanding on record date =490 shares + 390 shares =880 shares
		Prefered Dividend =880 shares*$2.40 =$2112
		Commmon shares outstanding on record date =5,900 shares + 3,000 shares - 590 shares + 390 shares =8,700 shares
		Common Dividend =8,700 shares*$2.40 =$20,880