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: January 2 Issue 120,000 shares of common stock for $68 per share. February 14 Issue 58,000 shares of preferred stock for $13 per share. May 8 Purchase 12,000 shares of its own common stock for $58 per share. May 31 Resell 6,000
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: January 2 Issue 120,000 shares of common stock for $68 per share. February 14 Issue 58,000 shares of preferred stock for $13 per share. May 8 Purchase 12,000 shares of its own common stock for $58 per share. May 31 Resell 6,000
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.6E
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Major League Apparel has two classes of stock authorized: 4%, $10 par preferred, and $1 par value common. The following transactions affect
January | 2 | Issue 120,000 shares of common stock for $68 per share. | ||
February | 14 | Issue 58,000 shares of |
||
May | 8 | Purchase 12,000 shares of its own common stock for $58 per share. | ||
May | 31 | Resell 6,000 shares of |
||
December | 1 | Declare a cash dividend on its common stock of $0.35 per share and a $23,200 (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 | 30 | Pay the cash dividends declared on December 1. |
Problem 10-6A Part 1
Required:
1. Record each of these transactions. (If no entry is required for a particular transaction, select "No
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