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Problem 11-3A (Part Level Submission) The stockholders equity accounts of Cullumber Company on January 1, 2019, were as follows. Preferred Stock (8%, $48 par, cumulative,
Problem 11-3A (Part Level Submission)
The stockholders equity accounts of Cullumber Company on January 1, 2019, were as follows.
Preferred Stock (8%, $48 par, cumulative, 10,000 shares authorized) | $ 360,000 | |
Common Stock ($1 stated value, 1,900,000 shares authorized) | 1,000,000 | |
Paid-in Capital in Excess of ParPreferred Stock | 100,000 | |
Paid-in Capital in Excess of Stated ValueCommon Stock | 1,400,000 | |
Retained Earnings | 1,750,000 | |
Treasury Stock (10,000 common shares) | 40,000 |
During 2019, the corporation had the following transactions and events pertaining to its stockholders equity.
Feb. | 1 | Issued 24,000 shares of common stock for $115,000. | |
Apr. | 14 | Sold 5,500 shares of treasury stockcommon for $32,000. | |
Sept. | 3 | Issued 4,700 shares of common stock for a patent valued at $34,000. | |
Nov. | 10 | Purchased 1,000 shares of common stock for the treasury at a cost of $5,700. | |
Dec. | 31 | Determined that net income for the year was $400,000. |
No dividends were declared during the year.
Journalize the transactions and the closing entry for net income
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