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National League Gear has two classes of stock
authorized: $ par preferred, and $ par value
common. The following transactions affect stockholders'
equity during National League's first year of
operations:
February Issue million shares of common
stock for $ per share.
February Issue shares of preferred stock
for $ per share.
June Purchase shares of its own
common stock for $ per share.
August Resell shares of treasury stock
for $ per share.
November Declare a cash dividend on its common
stock of $ per share and a $
of par value cash dividend on its
preferred stock payable to all
stockholders of record on November
Hint: Dividends are not paid on
treasury stock.
November Pay the dividends declared on November
Prepare the stockholders' equity section of the balance sheet as of
December Net income for the year was $Amount
to be deducted should be indicated by a minus sign.
