-. 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: 6%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2021, its first year of operations: January 2 Issue 110,000 shares of common stock for $61 per share. February 14 Issue 51,000 shares of preferred stock for $12 per share. May 8 Purchase 11,000 shares of its own common stock for $51 per share. May 31 Resell 5,500 shares of treasury stock for $56 per share. December 1 Declare a cash dividend on its common stock of $0.55 per share and a $30,600 (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 10-6A Part 1 Problem 10-6A Part 1 Required: 1. Record each of these transactions. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No General Journal Debit Credit Date January 02, 2021 1 Cash 6,710,000 Common Stock Additional Paid-In Capital 110,000 6,600,000 2 February 14, 2021 Cash 612,000 Preferred Stock Additional Paid-In Capital 3 May 08, 2021 Cash Preferred Stock Additional Paid-In Capital 4 May 31, 2021 308,000 Treasury Stock Cash 308,000 5 December 01, 2021 Cash Treasury Stock Additional Paid-In Capital 6 December 15, 2021 Dividends Dividends Payable 7 December 30, 2021 Dividends Payable Cash Problem 10-6A Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. Net income for the year was $481,000. (Amounts to be deducted should be indicated by a minus sign.) MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Preferred Stock Common Stock 0 Total Paid-in Capital Retained Earnings Treasury Stock Total Stockholders' Equity $ 0