Problem 13-4A Peck Corporation is authorized to issue 22,000 shares of $50 par value, 10%...
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Accounting
Problem 13-4A
Peck Corporation is authorized to issue 22,000 shares of $50 par value, 10% preferred stock and 130,000 shares of $5 par value common stock. On January 1, 2017, the ledger contained the following stockholders equity balances.
Preferred Stock (12,000 shares)
$600,000
Paid-in Capital in Excess of ParPreferred Stock
69,000
Common Stock (64,000 shares)
320,000
Paid-in Capital in Excess of ParCommon Stock
660,000
Retained Earnings
250,000
During 2017, the following transactions occurred.
Feb.
1
Issued 2,100 shares of preferred stock for land having a fair value of $125,000.
Mar.
1
Issued 1,100 shares of preferred stock for cash at $70 per share.
July
1
Issued 15,000 shares of common stock for cash at $8 per share.
Sept.
1
Issued 400 shares of preferred stock for a patent. The asking price of the patent was $29,500. Market price for the preferred stock was $70 and the fair value for the patent was indeterminable.
Dec.
1
Issued 8,250 shares of common stock for cash at $8.50 per share.
Dec.
31
Net income for the year was $260,000. No dividends were declared.
Journalize the transactions and the closing entry for net income
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