Reference no: EM133013746

Question - Flint Corporation is authorized to issue 20,000 shares of $50 par value, 10% preferred stock and 120,000 shares of $5 par value common stock. On January 1, 2020, the ledger contained the following stockholders' equity balances.

Preferred Stock (10,500 shares) $525,000

Paid-in Capital in Excess of Par-Preferred Stock 69,500

Common Stock (64,500 shares) 322,500

Paid-in Capital in Excess of Par-Common Stock 680,000

Retained Earnings 260,000

During 2020, the following transactions occurred.

Feb. 1 Issued 1,900 shares of preferred stock for land having a fair value of $123,000.

Mar. 1 Issued 1,000 shares of preferred stock for cash at $70 per share.

July 1 Issued 15,500 shares of common stock for cash at $8 per share.

Sept. 1 Issued 450 shares of preferred stock for a patent. The asking price of the patent was $29,000. Market price for the preferred stock was $71 and the fair value for the patent was indeterminable.

Dec. 1 Issued 7,750 shares of common stock for cash at $8.50 per share.

Dec. 31 Net income for the year was $261,000. No dividends were declared.

Required - Journalize the transactions and the closing entry for net income.

Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts.

Prepare a stockholders' equity section at December 31, 2020.