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1 On January 5, 2019, Phelps Corporation received a charter granting the right to 5,000...

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Accounting

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1 On January 5, 2019, Phelps Corporation received a charter granting the right to 5,000 shares of $50.00 par value, 14% cumulative and nonparticipating preferred stock, and 50,000 shares of $10.00 par value common stock. It then completed these transactions. Jan 8 Issued 20,000 shares of common stock at $18 per share. 5 Feb 1 issued to Sanchez Corp. 5,000 shares of preferred stock for the following: Equipment with a fair market value of $65,000 A factory building with a fair market value of $180,000 and, land with an appraised value of $250,000 ol Jul 29 Purchase 1.700 shares of common stock at $19 per share. (Use the cost method.) Aug 10 Sold the 1,500 treasury shares at $14 per share. 3 Dec 15 Declared 10% stock dividend for common stockholders. Stock price $58 per share. Shares are issed. 5 Dec 31 Declared $0.25 per share cash dividend on the common stock and declared the preferred dividend. 7 Dec 31 Closed the Income Summary account. There was a $250,700 net income. 7 2 Instructions: (a) Record the journal entries for the transactions listed above

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