National League Gear has two classes of stock authorized: 6%, $20 par preferred, and $5 par value common. The following transactions affect stockholders' equity during 2015, National League's first year of operations:
Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
| February |
2 |
Issue 1.5 million shares of common stock for $20 per share. |
| February |
4 |
Issue 450,000 shares of preferred stock for $22 per share. |
| June |
15 |
Repurchase 150,000 shares of its own common stock for $15 per share. |
August
|
15 |
Reissue 112,500 shares of treasury stock for $30 per share. |
| November |
1 |
Declare a cash dividend on its common stock of $1.50 per share and a $540,000 (6% of par value) cash dividend on its preferred stock payable to all stockholders on record on November 15. (Hint: Dividends are not paid on treasury stock.)
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| November |
30 |
Pay the dividends declared on November 1. |
9. Required information
| 2. |
Prepare the stockholders' equity section of the balance sheet as of December 31, 2015. Net income for the year was $4,750,000. (Amounts to be deducted should be indicated by a minus sign.)
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| |
| NATIONAL LEAGUE GEAR |
| Balance Sheet |
| (Stockholders' Equity Section) |
| December 31, 2015 |
| Stockholders' equity: |
| Total paid-in capital |
0 |
| Total stockholders' equity |
$0 |
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