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Donnie 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		Issue 3,000 shares of common stock for $61 per share.
May		15		Purchase 590 shares of treasury stock for $54 per share.
July		10		Resell 390 shares of treasury stock purchased on May 15 for $59 per share.
October		15		Issue 390 shares of preferred stock for $64 per share.
December		1		Declare a cash dividend on both common and preferred stock of $2.40 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, $490; Common Stock, $59; Additional Paid-in Capital, $85,500; and Retained Earnings, $34,300. Net income for the year ended December 31, 2021, is $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.)

Answer 1

Date	General Journal	Debit	Credit
Mar-01	Cash (3,000*$61)	$   183,000
	Common stock (3,000*$0.01)		$             30
	Paid in capital in excess of par - Common stock		$   182,970
May-15	Treasury stock (590*$54)	$     31,860
	Cash		$     31,860
Jul-10	Cash (390*59)	$     23,010
	Treasury stock (390*$54)		$     21,060
	Paid in capital from treasury stock		$       1,950
Oct-15	Cash (390*$64)	$     24,960
	Preferred stock (390*$1)		$           390
	Paid in capital in excess of par - Preferred stock		$     24,570
Dec-01	Cash Dividends (490+5,900+3,000+390-200)*$2.40)	$     22,992
	Dividend payable		$     22,992
Dec-31	Dividend payable	$     22,992
	Cash		$     22,992

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