Sheffield Corporation is authorized to issue 23,000 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 ParPreferred Stock		67,000
Common Stock (62,000 shares)		310,000
Paid-in Capital in Excess of ParCommon Stock		650,000
Retained Earnings		280,000

During 2020, the following transactions occurred.

Feb.	1		Issued 2,000 shares of preferred stock for land having a fair value of $129,000.
Mar.	1		Issued 1,200 shares of preferred stock for cash at $65 per share.
July	1		Issued 17,000 shares of common stock for cash at $7 per share.
Sept.	1		Issued 550 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 7,500 shares of common stock for cash at $7.50 per share.
Dec.	31		Net income for the year was $260,000. No dividends were declared.

(a)

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Journalize the transactions and the closing entry for net income.