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.) Date Account Titles and Explanation Debit Credit Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Post entries in the order Preferred Stock Common Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par-Common Stock Retained Earnings Prepare a stockholders' equity section at December 31, 2020. (Enter the account name only and do not provide the NOVAK CORPORATION Balance Sheet (Partial) Prepare a stockholders' equity section at December 31, 2020. (Enter the account name only and do not provi NOVAK CORPORATION Balance Sheet (Partial) Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Expenses Intangible Assets Long-term Investments Long-term Liabilities Net Income / (Loss) Paid-in Capital Property, Plant and Equipment Revenues Stockholders' Equity Total Additional Paid-in Capital Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Expenses Prepare a stockholders' equity section at December 31, 2020. (Enter the account name only and do not pro NOVAK CORPORATION Balance Sheet (Partial) Paid-in Capital Property, plant and Equipment Revenues Stockholders' Equity Total Additional Paid-in Capital Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Expenses Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital Total Paid-in Capital and Retained Earnings Total Property, plant and Equipment Total Revenues Total Stockholders' Equity