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

PHELPS CORPORATION

Stockholders Equity

December 31, 2021