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Part 1 of 2 Required information Problem 10-5A Understand stockholders' equity and the statement of stockholders' equity (L010-7) (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 2021, 300 shares of preferred stock and 3100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2020 1 T 1,100 shares of common stock for 3 per share. 15 Purchase 400 shares of treasury atok for 326 per share. July 10 Resell 200 shares of treasury to purchased May 15 for $31 per share. Otober 15 to 200 shares of preterred to for 36 share. December are ca dividendo both and preferred stock of 30.00 per share to all stockholders of record on December 15. Nini Dividends are not paid on treasury stock.) December 31 Pay the cash dividende declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2021 Preferred Stock. $300, Common Stock $3t Additional Paid in capital, $67,000, and Retained Earnings. $26,000. Net Income for the year ended December 31, 2021, is $9.900. Taking into consideration the beginning balances on January 1 2021 and all the transactions during 2021, respond to the following for Donnie Hilfiger Problem 10-5A Part 1 Problem 10-5A Part 1 Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) DONNIE HILFIGER Balance Sheet (Stockholders' Equity Section) December 31, 2021 Stockholders equity Preferred stock Common stock "Additional paid in capital Total paid.in capital Retained earnings Treasury stock Total stockholders' equity Problem 10-5A Part 2 2. Prepare the statement of stockholders' equity for the year ended December 31, 2021. (Amounts to be deducted should be indicated by a minus sign) DONNIE HILFIGER Statement of Stockholders' Equity For the Year Ended December 31, 2021 Total Preferred Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Stockholders' Equity R ey Stock I preferred stock Decare cash dividends Bao December 31 050S0S

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