Required information Problem 10-5A Understand stockholders' equity and the statement of stockholders' equity (L010-7) [The following information applies to the questions displayed below.) Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2021, 300 shares of preferred stock and 2,100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 1,100 shares of common stock for $23 per share. May 15 Purchase 400 shares of treasury stock for $16 per share. July 10 Resell 200 shares of treasury stock purchased on May 15 for $21 per share. October 15 Issue 200 shares of preferred stock for $26 per share. December 1 Declare a cash dividend on both common and preferred stock of $0.55 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, $300, Common Stock, $21; Additional Paid-in Capital, $57,000; and Retained Earnings, $21,000. Net income for the year ended December 31, 2021, is $8,900. Taking into consideration the beginning balances on January 1, 2021 and all the transactions during 2021, respond to the following for Donnie Hilfiger: DONNIE HILFIGER Statement of Stockholders' Equity For the Year Ended December 31, 2021 Preferred Stock Common Stock Additional Paid-in Capital Retained Earnings Total Treasury Stock Stockholders' Equity Balance, January 1 Issue common stock Purchase treasury stock Resell treasury stock Issue preferred stock Declare cash dividends Net income Balance, December 31 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Required information 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: 4%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issue 120,000 shares of common stock for $59 per share. February 14 Issue 49,000 shares of preferred stock for $13 per share. 8 Purchase 12,000 shares of its own common stock for $49 per share. May 31 Resell 6,000 shares of treasury stock for $54 per share. 1 Declare a cash dividend on its common stock of $0.55 per share and a $19,600 (4% 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. May December Journal entry worksheet 1 2 3 4 5 6 7 > Record the issuance of 120,000 shares of common stock for $59 per share. Note: Enter debits before credits. General Journal Debit Credit Date January 02, 2021 Record entry Clear entry View general journal MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Total Paid-in Capital 0 Total Stockholders' Equity $ 0