The following stockholders equity accounts, are in the ledger of Travis Corporation at January 1, 2021.

Common Stock ($5 par value) $2,200,000

Paid-in Capital in Excess of ParPreferred Stock 270,000

Paid-in Capital in Excess of Par ValueCommon Stock 700,000

Preferred Stock (8%, $200 par) 600,000

Retained Earnings 1,370,000

Treasury stock (20,000 shares) 150,000

Instructions

1. Prepare the journal entry to close net income for the year to retained earnings (not yet included in above amount). Net income was $450,000.
2. Answer the following questions, showing all calculations: How many shares of common stock are issued?
3. How many shares of preferred stock are issued?
4. What is the total cash received for the common stock when issued?
5. How many shares of common stock are outstanding?
6. What is the cost per share of the treasury stock?
7. Prepare the stockholders equity section of the balance sheet (in the proper order) at December 31, 2021.

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