1 Required information Problem 10-2A Record equity transactions and indicate the effect on the balance sheet equation (LO10- 2, 10-3, 10-4, 10-5) [The following information applies to the questions displayed below.) Part 1 of 2 1.31/1.5 points awarded Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 330 shares of preferred stock and 4,300 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March Scored 1 Issue 1,400 shares of common stock for $45 per share. May 15 Purchase 430 shares of treasury stock for $38 per share. July 10 Resell 230 shares of treasury stock purchased on May 15 for $43 per share. October 15 Issue 230 shares of preferred stock for $48 per share. December 1 Declare a cash dividend on both common and preferred stock of $0.80 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, 2021: Preferred Stock, $330; Common Stock, $43; Additional Paid-in Capital, $77,500; and Retained Earnings, $31,100. Net income for the year ended December 31, 2021, is $11,400. Problem 10-2A Part 1 Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) Credit No 1 Date General Journal March 01, 20 Cash Common Stock Additional Paid-in Capital Debit 63,000 14 62,986 2 16,340 May 15, 2021 Treasury Stock Cash 16,340 3 9,890 July 10, 2021 Cash Treasury Stock Additional Paid-in Capital 333 333 33 8,740 1,150 4 11,040 October 15, 2 Cash Preferred Stock Additional Paid-in Capital 230V 10,810 5 6,920X December 01 Dividends Dividends Payable 6,920X 6 December 15 No Journal Entry Required SI 7 6,920x December 31 Dividends Payable Cash 6,920X