Required information Problem 10-6A (Static) 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 2024, 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 May 31 December 1 Purchase 11,000 shares of its own common stock for $60 per share. Resell 5,500 shares of treasury stock for $65 per share. 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 December 1. Problem 10-6A (Static) Part 1 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.) Journal entry worksheet 1 2 3 4 5 6 7 Record the issuance of 110,000 shares of common stock for $70 per share. Note: Enter debits before credits. Date January 02, 2024 Record entry General Journal Debit Credit Clear entry < 1 2 3 4 5 6 7 View general journal Record the issuance of 60,000 shares of preferred stock for $12 per share. < 1 2 3 4 5 6 7 > Record the purchase of 11,000 shares of its own common stock for $60 per share. 1 2 3 4 5 6 7 Record the resale of 5,500 shares of treasury stock for $65 per share. < 1 2 3 4 5 6 7 Record the declaration of 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. The dividend is payable on December 30. (Hint: Dividends are not paid on treasury stock.) < 1 2 4 5 6 7 Record the entry on December 15, the date of record. < 1 2 3 4 5 6 7 Record the payment of the cash dividends declared on December 1. > > Problem 10-6A (Static) Part 2 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. 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, 2024 Stockholders' Equity: Total Paid-in Capital Total Stockholders' Equity