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Major League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders’ equity during 2018, its first year of operations:

January 2 Issue 100,000 shares of common stock for $69 per share.

February 14 Issue 59,000 shares of preferred stock for $11 per share.

May 8 Repurchase 10,000 shares of its own common stock for $59 per share.

May 31 Reissue 5,000 shares of treasury stock for $64 per share.

December 1 Declare a cash dividend on its common stock of $0.30 per share and a $29,500 (5% 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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Jarrod Robel
Jarrod RobelLv2
30 Sep 2019
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National League Gear has two classes of stock authorized: 5%,$20 par preferred, and $5 par value common. The followingtransactions affect stockholders’ equity during 2015, NationalLeague’s first year of operations: February 2 Issue 1.1 millionshares of common stock for $24 per share. February 4 Issue 490,000shares of preferred stock for $24 per share. June 15 Repurchase110,000 shares of its own common stock for $19 per share. August 15Reissue 82,500 shares of treasury stock for $34 per share. November1 Declare a cash dividend on its common stock of $1.10 per shareand a $490,000 (5% of par value) cash dividend on its preferredstock payable to all stockholders on record on November 15. (Hint:Dividends are not paid on treasury stock.) November 30 Pay thedividends declared on November 1. Issue 1.10 million shares ofcommon stock for $24 per share. Record the transaction. Issue490,000 shares of preferred stock for $24 per share. Record thetransaction. Repurchase 110,000 shares of its own common stock for$19 per share. Record the transaction. Reissue 82,500 shares oftreasury stock for $34 per share. Record the transaction. Declare acash dividend on its common stock of $1.10 per share and a $490,000(5% of par value) cash dividend on its preferred stock payable toall stockholders on record on November 15. (Hint: Dividends are notpaid on treasury stock.) Record the declaration of cash dividends.Declare a cash dividend on its common stock of $1.10 per share anda $490,000 (5% of par value) cash dividend on its preferred stockpayable to all stockholders on record on November 15. (Hint:Dividends are not paid on treasury stock.). Record the entry on thedate of record. Issue 1.10 million shares of common stock for $24per share. Record the transaction. Issue 490,000 shares ofpreferred stock for $24 per share. Record the transaction.Repurchase 110,000 shares of its own common stock for $19 pershare. Record the transaction. Reissue 82,500 shares of treasurystock for $34 per share. Record the transaction. Declare a cashdividend on its common stock of $1.10 per share and a $490,000 (5%of par value) cash dividend on its preferred stock payable to allstockholders on record on November 15. (Hint: Dividends are notpaid on treasury stock.) Record the declaration of cash dividends.Declare a cash dividend on its common stock of $1.10 per share anda $490,000 (5% of par value) cash dividend on its preferred stockpayable to all stockholders on record on November 15. (Hint:Dividends are not paid on treasury stock.). Record the entry on thedate of record. Pay the dividends declared on November 1. Recordthe transaction.

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 440 shares of preferred stock and 5,400 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018:

March 1 Issues 2,500 shares of common stock for $56 per share.

May 15 Purchase 540 shares of treasury stock for $49 per share.

July 10 Reissues 340 shares of treasury stock purchased on May 15 for $54 per share.

October 15 Issues 340 shares of preferred stock for $59 per share.

December 1 Declare a cash dividend on both common and preferred stock of $1.90 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, 2018: Preferred Stock, $440; Common Stock, $54; Additional Paid-in Capital, $83,000; and Retained Earnings, $33,300. Net income for the year ended December 31, 2018, is $13,600.

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 410 shares of preferred stock and 5,100 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018:

March 1 Issues 2,200 shares of common stock for $53 per share.

May 15 Purchase 510 shares of treasury stock for $46 per share.

July 10 Reissues 310 shares of treasury stock purchased on May 15 for $51 per share.

October 15 Issues 310 shares of preferred stock for $56 per share.

December 1 Declare a cash dividend on both common and preferred stock of $1.60 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, 2018: Preferred Stock, $410; Common Stock, $51; Additional Paid-in Capital, $81,500; and Retained Earnings, $32,700. Net income for the year ended December 31, 2018, is $13,000.

Required:

1. Record each of these transactions.

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