Question

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.)

Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.] Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 380 shares of preferred stock and 4,800 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 1,900 shares of common stock for $50 per share. May 15 Purchase 480 shares of treasury stock for $43 per share. July 10 Resell 280 shares of treasury stock purchased on May 15 for $48 per share. October 15 Issue 280 shares of preferred stock for $53 per share. December 1 Declare a cash dividend on both common and preferred stock of $1.30 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 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, $380; Common Stock, $48; Additional Paid-in Capital, $80,000; and Retained Earnings, $32,100. Net income for the year ended December 31, 2021, is $12,400.

Answer 1

solution Date Particulare Debat Gredet Mar ol 95000 cash (1900 x 50) Common stock (1900X0.01) Additional poed in capital Treas wuy Stock (480x43) Cash 94981 Мач 15 20640 20640 July 10 cash (280 x 48) [13440 Treasury Stock (280x43) Addetional paid in capital 12040 1400 oct 15 cash (280x53) | 14840 preferred stock (280x1) Addetional pold in capital 280 14560 Dec 01 8120 8120 Dovedendę Diupadends payable [ 380+ 4800 +1900+ 480 +280 +280] x 1 No entry Dec 15 8120 bec 31 Dividende, payable cash 8120