Problem 10-6A Record equity transactions and prepare the stockholders' equity section (LO10-2, 10-3, 10-4, 10-5, 10-7) The following information applies to the questions displayed below. Major League Apparel has two classes of stock authorized: 6%, $10 par preferred and $1 par value common. The following transactions affect stockholders' equity during 2018, its first year of operations: January 2 Issue 110,000 shares of common stock for $70 per share. February 14 Issue 60,000 shares of preferred stock for $12 per share May 8 Repurchase 11,000 shares of its own common stock for $60 per share. May 31 Reissue 5,500 shares of treasury stock for $65 per share December 1 Declare a cash dividend on its common stock of$.0.25 per share and a $.36.000 (6% 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 December1. Required 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1January 02, 2018 Cash 7,700,000 Comm 110,000 7,590,000 on stock Additional paid-in capital February 14 2018 2 Cash 720,000 Preferred stock 600,000 120,000 Additional paid-in capital May 08, 2018 Treasury stock 660,000 Cash 660,000 4 May 31, 2018 Cash 357,500 Treasury stock Additional paid-in capital 330,000 27,500 December 01, Dividends 2018 Dividends payable December 15 2018 No journal entry required December 30 2018 Dividends payable Cash Required information 0.50 points You did not receive full credit for this question in a previous attempt Problem 10-6A Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. Net income for the year was $490,000. (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet Stockholders' Equity Section) December 31, 2018 Stockholders' equity: referred stock Common stock Additional paid-in capital 5600,000 110,000 7,737,500 Total paid-in capital Retained eamings Treasury stock 8,447,500 (330,000) Total stockholders' equity 8.117,500