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Required information

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

$10-3,10-4,10-5,10-7)$

$[$The following information applies to the questions displayed below.$]$

Tennis Apparel has two classes of stock authorized: $6\%,$ $$10$ par preferred, and $$1$ par value common. The following

transactions affect stockholders' equity during $2024,$ its first year of operations:

January $2$ Issue $110,000$ shares of common stock for $$64$ per share.

February $14$ Issue $54,000$ shares of preferred stock for $$12$ per share.

May $8,$ Purchase $11,000$ shares of its own common stock for $$54$ per share.

May $31$ Resell $5,500$ shares of treasury stock for $$59$ per share.

December $1$ Declare a cash dividend on its common stock of $$0\mathrm{.}70$ per share and a $$32,400(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 December $1.$

Problem $10-6$A $($Algo$)$ Part $1$

Required:

Record each of these transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first

account field.$)$

Journal entry worksheet

Record the declaration of a cash dividend on its common stock of $$0\mathrm{.}70$ per

share and a $$32,400(6\%$ of par value$)$ cash dividend on its preferred stock

payable to all stockholders. The dividend is payable on December $30.($Hint:

Dividends are not paid on treasury stock.$)$

Note: Enter debits before credits.