On January 5, 2014, Phelps Corporation received a charter granting the right to issue 5,400 shares of $105 par value, 7% cumulative and nonparticipating preferred stock, and 51,900 shares of $11 par value common stock. It then completed these transactions.
| Jan. 11 | Issued 20,480 shares of common stock at $17 per share. |
| Feb. 1 | Issued to Sanchez Corp. 4,300 shares of preferred stock for the following assets: equipment with a fair value of $56,950; a factory building with a fair value of $172,900; and land with an appraised value of $333,200. |
| July 29 | Purchased 1,930 shares of common stock at $20 per share. (Use cost method.) |
| Aug. 10 | Sold the 1,930 treasury shares at $12 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 $183,330 net income. |
(a)Record the journal entries for the transactions listed above.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. $5,275.)
| Date | Account Titles and Explanation | Debit | Credit |
| January 11 | | | |
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| February 1 | | | |
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| July 29 | | | |
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| August 10 | | | |
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| December 31 | | | |
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| December 31 | | | |
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(b)Prepare the stockholders’ equity section of Phelps Corporation’s balance sheet as of December 31, 2014.(Enter account name only and do not provide descriptive information.)
PHELPS CORPORATION
Stockholders’ Equity
December 31, 2014 Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders’ Equity
$ Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders’ Equity Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders’ Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital Total Paid-in Capital and Retained Earnings Total Property, Plant and Equipment Total Stockholders’ Equity Additional Paid-in CapitalCapital StockCurrent AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Capital StockTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Paid-in Capital and Retained EarningsTotal Property, Plant and EquipmentTotal Stockholders’ Equity
$ Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders’ Equity Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders’ Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital Total Paid-in Capital and Retained Earnings Total Property, Plant and Equipment Total Stockholders’ Equity Additional Paid-in Capital Capital Stock Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders’ Equity Total Assets Total Capital Stock Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders’ Equity Total Long-term Investments Total Long-term Liabilities Total Paid-in Capital Total Paid-in Capital and Retained Earnings Total Property, Plant and Equipment Total Stockholders’ Equity
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