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The stockholders equity accounts of Novak Corporation on January 1, 2020, were as follows. Preferred Stock (8%, $52 par, 10,000 shares authorized) $ 442,000 Common
The stockholders equity accounts of Novak Corporation on January 1, 2020, were as follows.
Preferred Stock (8%, $52 par, 10,000 shares authorized) | $ 442,000 | |
Common Stock ($1 stated value, 1,950,000 shares authorized) | 1,350,000 | |
Paid-in Capital in Excess of ParPreferred Stock | 115,000 | |
Paid-in Capital in Excess of Stated ValueCommon Stock | 1,400,000 | |
Retained Earnings | 1,750,000 | |
Treasury Stock (10,500 common shares) | 52,500 |
During 2020, the corporation had the following transactions and events pertaining to its stockholders equity.
Feb. | 1 | Issued 26,000 shares of common stock for $122,000. | |
Apr. | 14 | Sold 5,700 shares of treasury stockcommon for $32,700. | |
Sept. | 3 | Issued 5,100 shares of common stock for a patent valued at $36,000. | |
Nov. | 10 | Purchased 1,000 shares of common stock for the treasury at a cost of $6,000. | |
Dec. | 31 | Determined that net income for the year was $485,000. |
No dividends were declared during the year.
Journalize the transactions and the closing entry for net income.
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