Reference no: EM133139747
Question - The stockholders' equity accounts of Culver Corporation on January 1, 2022, were as follows.
Preferred Stock (8%, $50 par, 11,000 shares authorized) $400,000
Common Stock ($1 stated value, 2,000,000 shares authorized) 1,200,000
Paid-in Capital in Excess of Par-Preferred Stock 135,000
Paid-in Capital in Excess of Stated Value-Common Stock 1,500,000
Retained Earnings 1,850,000
Treasury Stock (11,000 common shares) 55,000
During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb. 1 Issued 24,000 shares of common stock for $116,000.
Apr. 14 Sold 6,000 shares of treasury stock-common for $32,900.
Sept. 3 Issued 5,200 shares of common stock for a patent valued at $35,700.
Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $5,700.
Dec. 31 Determined that net income for the year was $415,000.
No dividends were declared during the year.
Required - Journalize the transactions and the closing entry for net income.