Problem 13-03A a-c (Video) The stockholders' equity accounts of Blue Spruce Corporation on January 1, 2020, were as follows. Preferred Stock (8%, $52 par, 10,500 shares authorized) 442,000 Common Stock ($1 stated value, 2,000,000 shares authorized) 1,350,000 Paid-in Capital in Excess of Par-Preferred Stock 100,000 Paid-in Capital in Excess of Stated Value-Common Stock 1,450,000 Retained Earnings 1,850,000 Treasury Stock (10,000 common shares) 50,000 During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity Feb. 1 Issued 25,000 shares of common stock for $124,000. Apr. 14 Sold 5,900 shares of treasury stock-common for $32,000 Sept. 3 Issued 4,700 shares of common stock for a patent valued at $34,300 Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $5,800 Dec. 31 Determined that net income for the year was $435,000. No dividends were declared during the year. Your answer is partially correct. Try again Journalize the transactions and the closing entry for net income. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Date Credit Feb. 1 Cash 124000.00 Common Stock 25000.00 X Paid-in Capital in Excess of Par-Common Stock 99000.00 Cash 32000.00 Apr. 14 Treasury Stock 29500.00 Paid-in Capital from Treasury Stock 2500.00 Patents 34300.00 Common Stock 4700.00 X Paid-in Capital in Excess of Par-Common Stock 29600.00 X Treasury Stock 5800.00 Cash 5800.00 Income Summary Dec. 31 435000.00 Retained Earnings 435000.00 Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J5 for the posting reference.) (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Explanation Ref. Date Debit Credit Balance Balance 442000.00 Common Stock Credit Date Explanation Ref. Debit Balance Balance J5 J5 Paid-in Capital in Excess of Par-Preferred Stock Balance Explanation Ref Date Debit Credit Balance 100000.00 Paid-in Capital in Excess of Stated Value-Common Stock Explanation Ref. Balance Date Debit Credit Balance J5 J5 x X Paid-in Capital from Treasury Stock Date Explanation Ref Debit Credit Balance J5 Retained Earnings Explanation Ref. Balance Date Debit Credit Balance J5 Treasury Stock Explanation Ref. Debit Balance Date Credit Balance J5 5 x BLUE SPRUCE CORPORATION Balance Sheet (Partial) December 31, 2020 Stockholders' Equity Paid-in Capital Capital Stock Preferred Stock 442000,00 X Common Stock 1370700.00 1812700.00 Total Capital Stock Capital Stock Paid-in Capital in Excess of Par-Common Stock 100000.00 $ Paid-in Capital in Excess of Stated Value-Commor 1578600.00 Paid-in Capital from Treasury Stock 2500.00 Total Paid-in Capital 3502800.00 2285000.00 Less 26300.00 Treasury Stock 2258700.00 Total Stockholders' Equity