(a) Record the journal entries for the transactions listed above.

(b) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of December 31, 2017.

On January 5, 2017, Phelps Corporation received a charter granting the right to issue $50.00par value, 50,000shares of 5,000 shares of 14% cumulative and nonparticipating preferred stock, and $10.00par value common stock. It then completed these transactions Jan 11 Issued Feb 1Issued to Sanchez Corp $20 shares of preferred stock for the following 20,000 shares of common stock at per share 5,000 $60,000 Equipment with a fair market value of A factory building with a fair market value of and, land with an appraised value of $180,000 per share per share $250,000 shares of common stock at Jul 29Purchased 1,600 $19 (Use the cost method.) 1,500 10% $58 $0.22 $14 Aug 10Sold the Dec 15 Declared a treasury shares at stock dividend for common stockholders. Stock price per share Shares are issed IS Declared a declared the preferred dividend Closed the Income Summary account. There was a Dec 31 per share cash dividend on the common stock and Dec 31 $186,700 net income