54 points Required Information The fallowing informarion applies to rhe question

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54 points Required Information The fallowing informarion applies to rhe questions displayed below Prepare the stockholders inus sign.) Amounts to be deducted sheG MAJORLEAGUEm Major League Apparel has two classes of stock authored 6%, SO par preferred, and Balance Sheet $1 par value common. The following transactions affect stockholders equity during 2018, its first year of operations (Stockholders' Equity December 31, 20 Stockholders equity: referred stock ommon stock dditional paid in capital dditional paid in capital January 2 Issue 110,000 shares of common stock for $51 per share February 14 Issue 41,000 shares of preferred stock for $12 per share May 8 Repurchase 11,000 shares of its own common stock for $41 per share May 31 Reissue 5.500 shares of treasury stock for $46 per share December 1 Declare a cash dividend on its common stock of $0.30 per share and a $24.6006% 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 treosury stock. December 30 Pay the cash dividends declared on December 1 Total paid-in capital etained earnings reasury stock Total stockholders' equity

Explanation / Answer

MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' equity section) December 31, 2018 $ Stockholders' equity: Preferred stock 410000 Common stock 110000 Additional paid in capital-Preferred (41000*2) 82000 Additional paid in capital-Common (110000*50) 5500000 Total paid-in capital 6102000 Retained earnings (471000-24600-((110000-11000)*0.3)) 416700 Treasury stock ((11000*41)-(5500*46)) -198000 Total stockholders' equity 6320700

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