Problem 13-04A a-c (Part Level Submission) (Video)

Monty Corporation is authorized to issue 20,000 shares of $50 par value, 10% preferred stock and 130,000 shares of $5 par value common stock. On January 1, 2020, the ledger contained the following stockholders equity balances.

Preferred Stock (12,000 shares)		$600,000
Paid-in Capital in Excess of ParPreferred Stock		70,500
Common Stock (65,500 shares)		327,500
Paid-in Capital in Excess of ParCommon Stock		650,000
Retained Earnings		290,000

During 2020, the following transactions occurred.

Feb.	1		Issued 2,000 shares of preferred stock for land having a fair value of $121,000.
Mar.	1		Issued 1,200 shares of preferred stock for cash at $70 per share.
July	1		Issued 15,000 shares of common stock for cash at $7 per share.
Sept.	1		Issued 350 shares of preferred stock for a patent. The asking price of the patent was $30,000. Market price for the preferred stock was $69 and the fair value for the patent was indeterminable.
Dec.	1		Issued 8,000 shares of common stock for cash at $7.50 per share.
Dec.	31		Net income for the year was $258,000. No dividends were declared.