Reference no: EM133157842

Question - The stockholders' equity accounts of Skysong, Inc. on January 1, 2022, were as follows.

Preferred Stock (8%, $50 par, cumulative, 10,500 shares authorized) $400,000

Common Stock ($1 stated value, 1,900,000 shares authorized) 1,250,000

Paid-in Capital in Excess of Par-Preferred Stock 135,000

Paid-in Capital in Excess of Stated Value-Common Stock 1,400,000

Retained Earnings 1,800,000

Treasury Stock (10,500 common shares) 52,500

During 2022, the corporation had the following transactions and events pertaining to its stockholders' equity.

Feb. 1 Issued 25,000 shares of common stock for $121,000.

Apr. 14 Sold 6,000 shares of treasury stock-common for $32,800.

Sept. 3 Issued 5,000 shares of common stock for a patent valued at $34,200.

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 $410,000.

No dividends were declared during the year.

Required -

1. Make the transactions and the closing entry for net income.

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