Gerstner Corporation is authorized to issue 10,000 shares of exist40 par value, 10% preferred stock and 200,000 shares of exist5 par value common stock. On January 1, 2014, the ledger contained the following stockholders' equity balances. Preferred Stock (5,000 shares) exist200,000 Paid-in Capital in Excess of Par-Preferred Stock 60,000 Common Stock (70,000 shares) 350,000 Paid-in Capital in Excess of Par Common Stock 700,000 Retained Earnings 300,000 During 2014, the following transactions occurred. Feb. 1 Issued 1,000 shares of preferred stock for land having a fair value of exist65,000. Mar. 1 Issued 2,000 shares of preferred stock for cash at exist60 per share. July 1 Issued 20,000 shares of common stock for cash at exist5.80 per share. Sept. 1 Issued 800 shares of preferred stock for a patent. The asking price of the patent was exist60,000. Market price for the preferred stock was exist65 and the fair value for the patent was indeterminable. Dec. 1 Issued 10,000 shares of common stock for cash at exist6 per share. Dec. 31 Net income for the year was exist210,000. No dividends were declared. Instructions (a) Journalize the transactions and the closing entry for net income. (b) Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J2 as the posting reference.) (c) Prepare a stockholders' equity section at December 31, 2014