Problem $10-6$A $($Algo$)$ Record equity transactions and prepare the stockholders' equity section $($LO$10-2,10-3,10-4,10-5,10-7)$

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Little League Apparel has two classes of stock authorized: $5\%,$ $$10$ par preferred, and $$1$ par value common. The following transactions affect stockholders$$ equity during $2024,$ its first year of operations:

January $2$ Issue $100,000$ shares of common stock for $$60$ per share.

February $14$ Issue $50,000$ shares of preferred stock for $$11$ per share.

May $8$ Purchase $10,000$ shares of its own common stock for $$50$ per share.

May $31$ Resell $5,000$ shares of treasury stock for $$55$ per share.

December $1$ Declare a cash dividend on its common stock of $$0\mathrm{.}50$ per share and a $$25,000(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 $1.$

Problem $10-6$A $($Algo$)$ Part $2$

$2.$ Prepare the stockholders$$ equity section of the balance sheet as of December $31,2024.$ Net income for the year was $$480,000.($Amounts to be deducted should be indicated by a minus sign.$)$