Question

Required information [The following information applies to the questions displayed below.) Major League Apparel has two classes of stock authorized: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: May January 2 Issue 110,000 shares of common stock for $67 per share. February 14 Issue 57,000 shares of preferred stock for $12 per share. May 8 Purchase 11,000 shares of its own common stock for $57 per share. 31 Resell 5,500 shares of treasury stock for $62 per share. December 1 Declare a cash dividend on its common stock of $0.40 per share and a $ 34,200 (6% 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 30 Pay the cash dividends declared on December 1. Required: 1. Record each of these transactions. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 Record the issuance of 110,000 shares of common stock for $67 per share. Note: Enter debits before credits. General Journal | Debit Credit Date January 02, 2021 Record entry View general journal

Answer 1

Answer 1 :

	Date	General Journal	Debit	Credit
1	January 02, 2021	Cash (110,000 shares * $67)	7,370,000
		Common stock (110,000 shares * $1)		110,000
		Additional paid-in capital		7,260,000
		(To record issue of common stock)
2	February 14, 2021	Cash (57,000 shares * $12)	684,000
		Preferred stock (57,000 shares * $10)		570,000
		Additional paid-in capital		114,000
		(To record issue of preferred stock)
3	May 08, 2021	Treasury stock (11,000 * $57)	627,000
		Cash		627,000
		(To record repurchase of own shares)
4	May 31, 2021	Cash (5,500 * $62)	341,000
		Treasury stock (5,500 * $57)		313,500
		Additional paid-in capital		27,500
		(To record resales of treasury stock)
5	December 1 , 2021	Dividends [{(110,000 - 11,000 + 5,500) * $0.40} + $34,200]	76,000
		Dividends payable		76,000
		(To record dividends declared)
6	December 15 , 2021	No journal entry required
7	December 30 , 2021	Dividends payable	76,000
		Cash		76,000
		(To record payment of dividends)

Answer 2 :

Stockholders' equity:
Preferred stock	570,000
Common stock	110,000
Additional paid in capital (7,260,000 + 114,000 + 27,500)	7,401,500
Total paid-in capital	8,081,500
Retained earnings ($487,000 - $76,000)	411,000
Treasury stock	- 313,500
Total stockholders' equity	$8,179,000

Answer 2

poop poop poop poop poop poop