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Problem 13-4A Peck Corporation is authorized to issue 22,000 shares of $50 par value, 10% preferred stock and 130,000 shares of $5 par value common
Problem 13-4A
Peck Corporation is authorized to issue 22,000 shares of $50 par value, 10% preferred stock and 130,000 shares of $5 par value common stock. On January 1, 2017, the ledger contained the following stockholders equity balances.
Preferred Stock (12,000 shares) | $600,000 | |
Paid-in Capital in Excess of ParPreferred Stock | 69,000 | |
Common Stock (64,000 shares) | 320,000 | |
Paid-in Capital in Excess of ParCommon Stock | 660,000 | |
Retained Earnings | 250,000 |
During 2017, the following transactions occurred.
Feb. | 1 | Issued 2,100 shares of preferred stock for land having a fair value of $125,000. | |
Mar. | 1 | Issued 1,100 shares of preferred stock for cash at $70 per share. | |
July | 1 | Issued 15,000 shares of common stock for cash at $8 per share. | |
Sept. | 1 | Issued 400 shares of preferred stock for a patent. The asking price of the patent was $29,500. Market price for the preferred stock was $70 and the fair value for the patent was indeterminable. | |
Dec. | 1 | Issued 8,250 shares of common stock for cash at $8.50 per share. | |
Dec. | 31 | Net income for the year was $260,000. No dividends were declared. Journalize the transactions and the closing entry for net income |
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