The Beautifull Baby Inc. corporation is authorized to issue 22,000 preferred shares (10%) with a par value of $ 55 and 137,500 common shares par value of $ 3.30. On January 1, 2023, the General Ledger had the following Stockholders Equity balance sheets:

Preferred Stock $550,000

Paid in Capital in Excess of Par Value-Preferred 82,500

Common Stock (77,000 acciones) 254,100

Paid in Capital in Excess of Par Value-Common 770,000

Retained Earnings 300,000

During 2023 the following transactions occurred: February 1 They issued 2,200 preferred shares in exchange for land with a Fair Market Value of $ 137,500. March 1 They issued 1,100 preferred shares at $ 71.50 per share. July 1 They issued 17,600 common shares at $ 7.70 per share. September 1 They issued 440 preferred shares in exchange for a patent. The price of the patent was $ 33,000 and its Fair Market Value could not be determined. The Fair Market Value of the stock was $ 77. December 1 They issued 8,800 common shares at $ 8.25 per share. December 31 The Net Income for the year was $ 286,000. No dividends were declared

Instructions:

a) Prepare the daily entry for all transactions and the closing entry for Net Income. b) Prepare the Stockholders Equity section of the Balance Sheet as of December 31, 2023.