13-3B: The Stockholders equity accounts of Joey Corporation on January 1, 2012, were as follows.

Preferred Stock (10%, $100 par, noncumulative, 5,000 share authorized) $300,000

Common Stock ($5, stated value , 300,000 share authorized) $1,000,000

Paid in Capital in Excess of Par-Preferred Stock $20,000

Paid in Capital in Excess of Stated Value -Common Stock $425,000

Retained Earnings $488,000

Treasury Stock (5,000 common shares) $40,000

During the year 2012, the corporation had the following transactions and events pertaining to its stockholders' equity.

Feb. 1 Issued 3,000 shares of common stock for $25,000.

Mar. 20 Purchased 1,500 additional shares of common treasury stock at $8 per share.

June 12 Sold 4,000 shares of treasury stock- common for $36,000

Sept. 3 Issued 2,000 shares of common stock for a patent valued at $19,000

Dec. 31 Determined that the net income for the year was $350,000

Instructions:

a. Journalize the transactions and closing entry for net income.

b. Enter the beginning balances in the accounts and post the journal entries to the stockholders equity accounts

c. stockholders' equity section on December 31, 2012.