Question

[The following information applies to the questions displayed below.] 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 2018, its first year of operations: January 2 Issue 120,000 shares of common stock for $59 per share. February 14 Issue 49,000 shares of preferred stock for $13 per share. May 8 Repurchase 12,000 shares of its own common stock for $49 per share. May 31 Reissue 6,000 shares of treasury stock for $54 per share. December 1 Declare a cash dividend on its common stock of $0.55 per share and a $19,600 (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.RECORD TRANSACTIONS BELOW

1.Issue 120,000 shares of common stock for $59 per share.

2.issue 49,000 shares of preferred stock for $13 per share.

3.Repurchase 12,000 shares of its own common stock for $49 per share.

4.Reissue 6,000 shares of treasury stock for $54 per share.

5.Record the declaration of cash dividends.

6.Record the entry on the date of record.

7.Pay the cash dividends declared on December 1. Record the payment of cash dividends.

Answer 1