The stockholders' equity accounts of Chung Corporation on January 1, 1996, were as follows:

During 1996, the corporation had the following transactions and events pertaining to its stockholders' equity:
Feb. 1 Issued 4,000 shares of common stock for \(\$ 25,000\).
Mar. 20 Purchased 1,000 additional shares of common treasury stock at \(\$ 8\) per share.
June 14 Sold 4,000 shares of treasury stock-common for \(\$ 34,000\).
Sept. 3 Issued 2,000 shares of common stock for a patent valued at \(\$ 13,000\).
Dec. 31 Determined that net income for the year was \(\$ 215,000\).
\section*{Instructions}

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

(b) Enter the beginning balances in the accounts and post the journal entries to the stockholders' equity accounts. (Use J1 as the posting reference.)

(c) Prepare a stockholders' equity section at December 31, 1996.
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(d) Compute the book value per share of common stock at December 31, 1996, assuming the preferred stock does not have a call price.

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Preferred Stock (10%, $100 par noncumulative, 5,000 shares authorized) Common Stock ($5 stated value, 300,000 shares authorized) Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock-Common (5,000 shares) $ 300,000 1,000,000 15,000 400,000 488,000 40,000