Refer to the information provided in P102A In P102A, Donnie Hilfiger has two classes of stock authorized $1 par preferred and $0 01 par value common As of the beginning of 2015, 300 shares of preferred stock and 4,000 shares of common stock have been issued The following transactions affect stockho...

The Answer is in the image, click to view ...

Refer to the information provided in P102A. In P102A, Donnie Hilfiger has two classes of stock authorized:

Question:

Refer to the information provided in P10–2A.
In P10–2A, Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 common. As of the beginning of 2015, 300 shares of preferred stock and 4,000 shares of have been issued. The following transactions affect stockholders’ equity during 2015:
March 1 Issue 1,100 shares of for $42 per share.
May 15 Purchase 400 shares of treasury stock for $35 per share.
July 10 Reissue 200 shares of treasury stock purchased on May 15 for $40 per share.
October 15 Issue 200 shares of preferred stock for $45 per share.
December 1 Declare a cash on both common and preferred stock of $0.50 per share to all stockholders of record on December 15.
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, 2015: Preferred Stock, $300; Common Stock, $40; Additional Paid-in Capital, $76,000; and Retained Earnings, $30,500. Net income for the year ended December 31, 2015, is $10,800.

Required:
Taking into consideration all the transactions during 2015, respond to the following for Donnie Hilfiger:
1. Prepare the stockholders’ equity section of the as of December 31, 2015.
2. Prepare the statement of stockholders’ equity for the year ended December 31, 2015.
3. Explain how Requirements 1 and 2 are similar and how they are different.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...