Major League Apparel has two classes of stock authorized: 5%, $10 par preferred and $1 par value common. The following transactions affect stockholders’ equity during 2010, its first year of operations: January 2 Issue 100,000 shares of common stock for $60 per share. February 14 Issue 50,000 shares of preferred stock for $11 per share. May 8 Repurchase 10,000 shares of its own common stock for $50 per share. May 31 Reissue 5,000 shares of treasury stock for $55 per share. December 1 Declare a cash dividend on its common stock of $0.50 per share and a $25,000 (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 30 Pay the dividends declared on December 1. Required: 1. Record each of these transactions. 2. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2010. Net income for the year was $480,000. (Amounts to be deducted should be indicated with minus sign. Omit the “$” sign in your response.) Additional Requirements Level of Detail: Show all work