Practice Problem 1 The stockholders' equity accounts of Kingbird, Inc. on January 1, 2019, were as follows. Preferred Stock (8%, $48 par, cumulative, 10,000 shares authorized) Common Stock ($1 stated value, 2,000,000 shares authorized) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (10,500 common shares) $ 350,000 1,050,000 150,000 1,500,000 1,800,000 52,500 During 2019, the corporation had the following transactions and events pertaining to its stockholders' equity. Feb. 1 Issued 24,500 shares of common stock for $121,000. Apr. 14 Sold 5,600 shares of treasury stock-common for $33,100. Sept. 3 Issued 5,200 shares of common stock for a patent valued at $34,500. Nov. 10 Purchased 1,100 shares of common stock for the treasury at a cost of $5,800. Dec. 31 Determined that net income for the year was $485,000. No dividends were declared during the year. Journalize the transactions and the closing entry for net income. (Record journal entries in the order presented in entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Date Account Titles and Explanation Debit Credit Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (L part.) Preferred Stock Paid-in Capital in Excess of Par Value-Preferred Stock Common Stock Paid-in Capital in Excess of Stated Value-Common Stock Prepare a stockholders' equity section at December 31, 2019, including the disclosure of the preferred dividends in arrears. (Enter th provided in the question.) Kingbird, Inc. Balance Sheet (Partial)