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: January 2 Issue 110,000 shares of common stock for $70 per share.February 14 Issue 60,000 shares of preferred stock for $12 per share.May 8 Purchase 11,000 shares of its own common stock for $60 per share.May 31 Resell 5,500 shares of treasury stock for $65 per share.December 1 Declare a cash dividend on its common stock of $0.25 per share and a $36,000 (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.

Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…

Answered: Major League Apparel has two classes of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 84PSA: Statement of Stockholders' Equity At the end of 2019, Stanley Utilities Inc. had the following...

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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:

January	2	Issue 110,000 shares of common stock for $70 per share.
February	14	Issue 60,000 shares of preferred stock for $12 per share.
May	8	Purchase 11,000 shares of its own common stock for $60 per share.
May	31	Resell 5,500 shares of treasury stock for $65 per share.
December	1	Declare a cash dividend on its common stock of $0.25 per share and a $36,000 (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.

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