The stockholders equity accounts of Chung Corporation on January 1, 2006, were as follows:

Preferred Stock (10%, $100 par non-cumulative, 5,000 shares authorized) $300,000 Common stock ($5 par value, 300,000 shares authorized) 1,000,000

Additional Paid-in Capital- Preferred Stock 15,000

Additional Paid-in Capital- Common Stock 400,000

Retained Earnings 488,000

Treasury Stock (5,000 common shares) 40,000

During 2006, the corporation had the following transactions and events pertaining to its stockholders equity:

Feb. 1 Issued 4,000 shares of no-par preferred stock for $25,000.

Mar. 20 Purchased 1,000 additional shares of common treasury stock at 48 per share.

June 14 Sold 4,000 shares of treasury stock for $34,000.

Sept.3 Issued 2,000 shares of common stock for equipment valued at $13,000.

Dec.31 Determined that net income for the year was $215,000.

Instructions:

a. Journalize the transactions and the closing entry for net income. (20 points)

b. Prepare the stockholders equity section at Dec 31, 2006. (10 points)

c. Compute the book value per share of common stock at Dec 31, 2006.

(5 points)