Required Information Problem 10 2a Algo Record Equity Transactions And Indicate The Effect On The Balance Sheet Equati 1 (44.17 KiB) Viewed 28 times
Required Information Problem 10 2a Algo Record Equity Transactions And Indicate The Effect On The Balance Sheet Equati 2 (24.42 KiB) Viewed 28 times
Required information Problem 10-2A (Algo) Record equity transactions and indicate the effect on the balance sheet equation (LO10-2, 10-3, 10-4, 10-5) [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 2024, 340 shares of preferred stock and 4,400 shares of common stock have been issued. The following transactions affect stockholders' equity during 2024: March 1 May 15 July 10 October 15 December 1 Issue 1,500 shares of common stock for $46 per share.. Purchase 440 shares of treasury stock for $39 per share. Resell 240 shares of treasury stock purchased on May 15 for $44 per share.. Issue 240 shares of preferred stock for $49 per share.. Declare a cash dividend on both common and preferred stock of $0.90 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, 2024: Preferred Stock, $340: Common Stock, $44: Additional Pald-in Capital, $78,000; and Retained Earnings, $31,300. Net income for the year ended December 31, 2024, is $11,600. Problem 10-2A (Algo) Part 1 Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Problem 10-2A (Algo) Part 2 2. Select whether each of the following transactions increases (+) or decreases (-) total assets, total liabilities, and total stockholders' equity. (If none of the categories apply for a particular item, leave the cell blank.) Transaction Issue common stock Purchase treasury stock Resell treasury stock Issue preferred stock Declare cash dividends Pay cash dividends Total Assets Total Liabilities Total Stockholders Equity
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