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. roblem 10-6A Part 1 equired: Record each of these transactions. (If no entry is required for a particular transaction, select "No Journal Entry equired" in the first account field.) Answer is not complete. No Credit Debit 6,710,00 1 Date General Journal January 02, 2 Cash Common Stock Additional Paid-In Capital 110,000 6,600,00 2 612,000 February 14, Cash Preferred Stock Additional Paid-In Capital 510,000 102,000 3 May 08, 2021 Treasury Stock Cash 561,000 561,000 4 X308,000 May 31, 2021 Treasury Stock Cash 308,000x So XX XX SS SS 5 December 01 Cash Treasury Stock Additional Paid-In Capital 6 X94,125 December 15 Dividends Dividends Payable 94,125% 7 94,125 December 30 Dividends Payable Cash 94,125 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.) Answer is complete but not entirely MAJOR LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders' Equity: Preferred Stock $ 110,000 Common Stock 510,000x Additional Paid-in 6,702,000x Capital Total Paid-in Capital Retained Earnings Treasury Stock 7,322,000 (94,125) 253,000X Total Stockholders' Equity $ 7,480,875