On January 5, 2022, Phelps Corporation received a charter granting the right to issue 100,000...
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On January 5, 2022, Phelps Corporation received a charter granting the right to issue 100,000 shares of $40.00 par value, 10% cumulative and nonparticipating preferred stock, and 50,000 shares of $10.00 par value common stock. It then completed these transactions. Jan 8 Issued 30,000 shares of common stock at $30 per share. Feb 1 Issued to Sanchez Corp. 4,500 shares of preferred stock for the following: Equipment with a fair market value of $89,000 A factory building with a fair market value of $246,000 and, land with an appraised value of $175,000 Jul 29 Purchased 1,850 shares of common stock at $40 per share. (Use the cost method.) Aug 10 Sold the 1,500 treasury shares at $34 per share. Dec 15 Declared a 10% stock dividend for common stockholders. Stock price is $53 per share. Shares are issed. Dec 31 Declared a $2.00 per share cash dividend on the common stock and declared the preferred dividend. Dec 31 Closed the Income Summary account. There was a $1,453,200 net income. Instructions: (a) Record the journal entries for the transactions listed above. "(b) Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of December 31, 2022." PHELPS CORPORATION Stockholders' Equity December 31, 2022
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