Prince Dell, Inc., was organized in 2016. At December 31, 2016, the Prince Dell balance sheet reported the following stockholders equity:

Prince Dell Inc. Stockholders Equity December 31, 2016

Paid-in Capital
Preferred stock, 4%, $55 par, 650,000 shares authorized, none issued	$ 0
Common stock, $2 par, 540,000 shares authorized, 62,000 shares issued and outstanding	124,000
Paid-in capital in excess of parcommon	42,000
Total paid-in capital	166,000
Retained earnings	28,000
Total Stockholders equity	$194,000

Requirements:

1. During 2017, the company completed the following selected transactions. Journalize each transaction. Explanations are not required. a. Issued for cash 1,500 shares of preferred stock at par value. b. Issued for cash 2,000 shares of common stock at a price of $7 per share. c. Net income for the year was $78,000, and the company declared no dividends. Make the closing entry for net income.

2. Prepare the stockholders equity section of the Prince Dell balance sheet at December 31, 2017.