March 1 issues 2,800 shares of common stock for $59 per share.

may 15 purchase 570 shares of treasury stock for $52 per share.

july 10 reissues 370 shares of treasury stock purchased on may 15 for $57 per share.

october 15 issues 370 shares of preferred stock for $62 per share.

december 1 declare a cash dividend on both common and preferred stock of $2.20 per share to all stockholders of record on december 15. (hint: dividends are not paid on treasury stock.)

december 31 pay the cash dividends declared on december 1.

donnie hilfiger has the following beginning balances in its stockholders’ equity accounts on january 1, 2018: preferred stock, $470; common stock, $57; additional paid-in capital, $84,500; and retained earnings, $33,900. net income for the year ended december 31, 2021, is $14,200. record each of these transactions.

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above