1 00 On January 5, 2021, Phelps Corporation 2 received a charter granting the right to is 10,000 shares of $30.00 par value, 3 10% cumulative and nonparticipating preferred stock, and 50,000 shares of 4 $5.00 par value common stock. It then completed these transactions. 5 Jan 8 Issued 20,000 shares of common stock at $19 per share. 6 Feb 1 Issued to Sanchez Corp. 4,000 shares of preferred stock for the following: 7 Equipment with a fair market value of $65,000 A factory building with a fair market value of $250,000 9 and, land with an appraised value of $155,000 10 Jul 29 Purchase 1,800 shares of common stock at $40 per share. 11 (Use the cost method.) Aug 10 Sold the 1,500 treasury shares at $32 per share. 13 Dec 15 Declared a 15% stock dividend for common stockholders. Stock price 14 is $58 per share. Shares are issed. Dec 31 Declared $0.40 per share cash dividend on the common stock and 16 declared the preferred dividend. Dec 31 Closed the Income Summary account. There was a $1,470,700 net income. 18 19 Instructions: 20 (a) Record the joumal entries for the transactions listed above. 21 22 23 12 15 17 24 DN 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 61 (b) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of 62 December 31, 2021. 63 PHELPS CORPORATION 64 Stockholders' Equity 65 December 31, 2021 66 67 68 69 70 71