Question 1 Novak Corporation is authorized to issue 21,000 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 (10,000 shares) Paid-in Capital in Excess of Par-Preferred Stock Common Stock (62,500 shares) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $500,000 67,500 312,500 710,000 270,000 During 2020, the following transactions occurred. Feb. 1 Issued 2,100 shares of preferred stock for land having a fair value of $128,000. 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 550 shares of preferred stock for a patent. The asking price of the patent was $28,500. Market price for the preferred stock was $67 and the fair value for the patent was indeterminable. Dec. 1 Issued 8,000 shares of common stock for cash at $8.50 per share. Dec. 31 Net income for the year was $262,000. No dividends were declared. 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.) Journalize the transactions and the closing entry for net income. (Record journal entries in the orde presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Enter the beginning balances in the accounts, and post the journal entries to the stockholders' eqi accounts. (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Common Stock 4 Paid-in Capital in Excess of ParPreferred Stock 4 4 A Paid-in Capital in Excess of Par-Common Stock A Retained Earnings Prepare a stockholders' equity section at December 31, 2020. (Enter the account name only and de provide the descriptive information provided in the question.) NOVAK CORPORATION Balance Sheet (Partial) $ Baauc apupip