OU A W 00 1 On January 5, 2019, Phelps Corporation 2 received a charter granting the right to 5,000 shares of $50.00 par value, 14% cumulative and nonparticipating preferred stock, and 50,000 shares of $10.00 par value common stock. It then completed these transactions. Jan 8 Issued 20,000 shares of common stock at $18 per share. Feb 1 Issued to Sanchez Corp. 5,000 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 $180,000 and, land with an appraised value of $250,000 Jul 29 Purchase 1,700 shares of common stock at $19 per share. (Use the cost method.) Aug 10 Sold the 1,500 treasury shares at $14 per share. Dec 15 Declared 10% stock dividend for common stockholders. Stock price $58 per share. Shares are issed. Dec 31 Declared $0.25 per share cash dividend on the common stock and declared the preferred dividend. 17 Dec 31 Closed the Income Summary account. There was a $250,700 net income. = 15 16 627 61 (b) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of December 31, 2017 PHELPS CORPORATION Stockholders' Equity December 31, 2018 Capital Stock Preferred stock, Total capital stock Additional Paid-in Capital Total paid-in capital Total stockholders' equity OU A W 00 1 On January 5, 2019, Phelps Corporation 2 received a charter granting the right to 5,000 shares of $50.00 par value, 14% cumulative and nonparticipating preferred stock, and 50,000 shares of $10.00 par value common stock. It then completed these transactions. Jan 8 Issued 20,000 shares of common stock at $18 per share. Feb 1 Issued to Sanchez Corp. 5,000 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 $180,000 and, land with an appraised value of $250,000 Jul 29 Purchase 1,700 shares of common stock at $19 per share. (Use the cost method.) Aug 10 Sold the 1,500 treasury shares at $14 per share. Dec 15 Declared 10% stock dividend for common stockholders. Stock price $58 per share. Shares are issed. Dec 31 Declared $0.25 per share cash dividend on the common stock and declared the preferred dividend. 17 Dec 31 Closed the Income Summary account. There was a $250,700 net income. = 15 16 627 61 (b) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of December 31, 2017 PHELPS CORPORATION Stockholders' Equity December 31, 2018 Capital Stock Preferred stock, Total capital stock Additional Paid-in Capital Total paid-in capital Total stockholders' equity
