90.2K

Verified Solution

Link Copied!

Return to question Part 1 of 2 Required information Problem 10-2B 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. noints Nautical has two classes of stock authorized: $10 par preferred, and $1 par value common. As of the beginning of 2021, 150 shares of preferred stock and 2,200 shares of common stock have been issued. The following transactions affect stockholders' equity during 2021: March 1 Issue 2,200 additional shares of common stock for $17 per share. April 1 Issue 150 additional shares of preferred stock for $32 per share. June 1 Declare a cash dividend on both common and preferred stock of $0.60 per share to all stockholders of record on June 15. June 30 Pay the cash dividends declared on June 1. August 1Purchase 250 shares of common treasury stock for $14 per share. October 1 Reissue 150 shares of treasury stock purchased on August 1 for $16 per share. Nautical has the following beginning balances in its stockholders' equity accounts on January 1, 2021: Preferred Stock $1,500; Common Stock, $2,200; Additional Paid-in Capital, $18,700; and Retained Earnings, $10.700. Net income for the year ended December 31, 2021, is $7,250. Problem 10-2B 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.)

Answer & Explanation Solved by verified expert

See Answer