On January 5, 2022, Phelps Corporation received a charter granting the right to 10,000 shares of $ 30.00 par value 10% cumulative and nonparticipating preferred stock, and 50,000 shares of $ 5.00 par value common stock. It then completed these transactions .

Jan 8 Issued 20,000 shares of common stock at $20 per share

Feb 1 Issued to Sanchez Corp 3,500 shares of preferred stock for the following :

Equipment with a fair market value of $ 65,000

A factory building with a fair market value of $25 and, land with an appraised value of $ 155,000 Jul 29 Purchase 1,800 shares of common stock at $ 40 per share ( Use the cost method )

Aug 10 Sold the 1,500treasury shares at $ 32 per share

Dec 15 Declared 15% stock dividend for common stockholders Stock price is $58 per share,Shares are issed

Dec 31 Declared $ 0.80 per share cash dividend on the common stock and declared the preferred dividend

Dec 31 Closed the Income Summary account There was a $1,650,700 net income.

Instructions:

( 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, 2021