On January 5, 2012, Phelps Corporation received a charter granting the right to

Question

On January 5, 2012, Phelps Corporation received a charter granting the right to issue 5,600 shares of $104 par value, 7% cumulative and nonparticipating preferred stock, and 54,400 shares of $12 par value common stock. It then completed these transactions.

(a) Don't need help with a.

(b) Prepare the stockholders

Jan. 11
Issued 21,210 shares of common stock at $17 per share. Feb. 1
Issued to Sanchez Corp. 4,600 shares of preferred stock for the following assets: equipment with a fair value of $59,280; a factory building with a fair value of $175,000; and land with an appraised value of $333,800. July 29
Purchased 1,920 shares of common stock at $20 per share. (Use cost method.) Aug. 10
Sold the 1,920 treasury shares at $15 per share. Dec. 31
Declared a $0.40 per share cash dividend on the common stock and declared the preferred dividend. Dec. 31
Closed the Income Summary account. There was a $182,190 net income. On January 5, 2012, Phelps Corporation received a charter granting the right to issue 5,600 shares of $104 par value, 7% cumulative and nonparticipating preferred stock, and 54,400 shares of $12 par value common stock. It then completed these transactions. Prepare the stockholders' equity section of Phelps Corporation's balance sheet as of December 31, 2012. (For preferred stock, common stock and treasury stock enter the account name only and do not provide the descriptive information provided in the question.)

Explanation / Answer

Capital stock

          Preferred stock

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