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P15.1(LO 1,2,3,4) Excel Groupwork (Equity Transactions and Statement Preparation) On January 5,2020, Phelps Corporation received...

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P15.1(LO 1,2,3,4) Excel Groupwork (Equity Transactions and Statement Preparation) On January 5,2020, Phelps Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Issued 20,000 shares of common stock at $16 per share. Feb. 1 Issued to Sanchez Corp. 4,000 shares of preferred stock for the following assets: equipment with a fair value of $50,000; a factory building with a fair value of $160,000; and land with an appraised value of $270,000.
July 29 Purchased 1,800 shares of common stock at $17 per share. (Use cost method.) Aug. 10 Sold the 1,800 treasury shares at $14 per share. Dec. 31 Declared a $0.25 per share cash dividend on the common stock and declared the preferred dividend. Dec. 31 Closed the Income Summary account. There was a $175,700 net income. Instructions a. Record the journal entries for the transactions listed above. b. Prepare the stockholders equity section of Phelps Corporations balance sheet as of December 31,2020.

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