Required information [The following information applies to the questions displayed below.] Little League Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common. The following transactions affect stockholders' equity during 2024, its first year of operations: January 2 Issue 100,000 shares of common stock for $66 per share. February 14 Issue 56,000 shares of preferred stock for $11 per share. May 8 May 31 Purchase 10,000 shares of its own common stock for $56 per share. Resell 5,000 shares of treasury stock for $61 per share. December 1 Declare a cash dividend on its common stock of $8.45 per share and a $28,000 (5% 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 38 Pay the cash dividends declared on December 1. Required: 1. Record each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the firs account field.) 2. Prepare the stockholders' equity section of the balance sheet as of December 31, 2024. Net income for the year was $486,000. (Amounts to be deducted should be indicated by a minus sign.) LITTLE LEAGUE APPAREL Balance Sheet (Stockholders' Equity Section) December 31, 2024 Stockholders' Equity:

Stockholder's Equity includes the amount contributed by shareholders in the form of common stock, Paid-in Capital, and Preferred Stock. also includes Retained Earnings, which is the accumulated profit earned by the company and treasury stock..Little League ApparelJournal EntriesDateAccounts Title Debit Credit Jan 2Cash $ 6,600,000Common Stock $ 100,000Additional Paid in Capital - Common Stock $ 6,500,000(To record issuance of common stock)Feb 14Cash $ 616,000Preferred Stock $ 560,000Additional Paid in Capital - Preferred Stock $ 56,000(To record issuance of preferred stock)May 8Treasury Stock $ 560,000Cash $ 560,000(To record treasury stock purchased)May 31Cash $ 305,000Treasury Stock $ 280,000Additional Paid in Capital - Treasury Stock $ 25,000(To record treasury stock Sold)Dec 1Cash Dividend (Common Stock) $ 42,750Cash Dividend (Preferred Stock) $ 28,000Dividend Payable $ 70,750(To record dividend declared)Dec 30Dividend Payable $ 70,750Cash $ 70,750(To record divided paid)Dec 31Retained Earnings $ 70,750Cash Dividend (Common Stock) $ 42,750Cash Dividend (Preferred Stock) $ 28,000(To record dividend transferred to retained earnings)Dec 31Income Summary $ 486,000Retained Earnings $ 486,000(To record profit transferred to retained earings)2a. Stockholder's Equity Section -Little League ApparelStockholder's Equity SectionDecember 31, 2024Stockholder's Equity:Preferred Stock56,000 5%, $10 Par Preferred stock $ 560,000Common Stock100,000 $1 par value Common Stock Issued $ 100,000Paid in Capital:Additional Paid in Capital - Preferred Stock $ 56,000Additional Paid in Capital - Common Stock $ 6,500,000Additional Paid in Capital - Treasury Stock $ 25,000Total Paid in Capital $ 7,241,000Retained Earnings $ 415,250Less: Treasury Stock (5,000 Shares @ $56) $ -280,000Total Stockholder's Equity $ 7,376,250

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