Question 2 Culver Corporation is authorized to issue 24,500 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2020, the ledger contained the following stockholders' equity balances. Preferred Stock (11,500 shares) $575,000 Paid-in Capital in Excess of Par-Preferred Stock 73,000 Common Stock (68,000 shares) 340,000 Paid-in Capital in Excess of Par--Common Stock 710,000 Retained Earnings 350,000 During 2020, the following transactions occurred. Feb. 1 Issued 2,200 shares of preferred stock for land having a fair value of $124.000, Mar 1 Issued 1,200 shares of preferred stock for cash at $65 per share. July 1 Issued 15,000 shares of common stock for cash at $0 per share. Sept. 1 Issued 400 shares of preferred stock for a patent. The asking price of the patent was $32.000. Market price for the preferred stock was $70 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 $258,000. No dividends were declared. Your answer is correct. 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 Feb. 1 Land 124,000 Preferred Stock 110,000 Paid-in Capital in Excess of Par-Preferred Stock 14,000 Mar. 1 Cash 78,000 Preferred Stock 60,000 Paid-in Capital in excess of Par-Preferred Stock 18,000 July 1 Cash 120,000 Common Stock 75,000 Paid-in Capital in Excess of Par-Common Stock 45,000 Sept. 1 Patents 28,000 Preferred Stock 20,000 Paid-in Capital in Excess of Par-Preferred Stock 8,000 Dec. 1 Cash 68,000 Common Stock 40,000 Paid-in Capital in Excess of Par-Common Stock 28,000 Dec. 31 258,000 Income Summary Retained Earnings 258,000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 3 of 8 used (b) Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Common Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Par Common Stock Retained Earnings