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Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2015, 490 shares of preferred stock and 5,900 shares of common stock have been issued. The following transactions affect stockholdersAc€?c equity during 2015: |
| March | 1 | Issues 3,000 shares of common stock for $61 per share. |
| May | 15 | Repurchases 590 shares of treasury stock for $54 per share. |
| July | 10 | Reissues 390 shares of treasury stock purchased on May 15 for $59 per share. |
| October | 15 | Issues 390 shares of preferred stock for $64 per share. |
| December | 1 |
Declares a cash dividend on both common and preferred stock of $2.40 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) |
| December | 31 | Pays the cash dividends declared on December 1. |
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Donnie Hilfiger has the following beginning balances in its stockholdersAc€?c equity accounts on January 1, 2015: Preferred Stock, $490; Common Stock, $59; Additional Paid-in Capital, $85,500; and Retained Earnings, $34,300. Net income for the year ended December 31, 2015, is $14,600.
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