Reference no: EM132614438
Question - The stockholders' equity accounts of Sarasota Corporation on January 1, 2020, were as follows.
Preferred Stock (8%, $52 par, 11,000 shares authorized) $442,000
Common Stock ($1 stated value, 1,950,000 shares authorized) 1,100,000
Paid-in Capital in Excess of Par-Preferred Stock 100,000
Paid-in Capital in Excess of Stated Value-Common Stock 1,450,000
Retained Earnings 1,750,000
Treasury Stock (10,000 common shares) 40,000
During 2020, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb.1 Issued 26,000 shares of common stock for $119,000.
Apr.14 Sold 5,600 shares of treasury stock-common for $32,000.
Sept.3 Issued 4,700 shares of common stock for a patent valued at $34,300.
Nov.10 Purchased 1,000 shares of common stock for the treasury at a cost of $5,900.
Dec.31 Determined that net income for the year was $435,000.
No dividends were declared during the year.
Required - Journalize the transactions and the closing entry for net income.