Question

Problem 13-04A a-c (Part Level submission) twdeo Concord Corporation is authorized to issue 25,000 shares of $50 par value, 10% preferred stock and 125,000 shares of $5 par value common stock. On January 1, 2020, the ledger contained the following stockholders' equity balances Preferred Stock (11,000 shares) Paid-in Capital in Excess of Par-Preferred Stock Common Stock (63,000 shares) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $550,000 68,000 315,000 750,000 320,000 During 2020, the following transactions occurred Feb. 1 Issued 2,200 shares of preferred stock for land having a fair value of $128,000 Mar 1 1ssued 1,200 shares of preferred stock for cash at $70 per share. İ July 1 Issued 15,000 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 $28,000. Market price for the preferred stock was $67 and the fair value for the patent was indeterminable. Dec. 1 Issued 8,000 shares of common stock for cash at $8.50 per share. Dec. 31 Net income for the year was $259,000. No dividends were declared. tY (a) Journalize the transactions and the closing entry for net income. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Answer 1

Date	Account Title & explanations	Debit	Credit
1-Feb	Land	128000
	10% Preferred stock(2200*50)		110000
	Paid-in-capital in excess of Par-Preferred stock(128000-110000)		18000
1-Mar	Cash(1200*70)	84000
	10% Preferred stock(1200*50)		60000
	Paid-in-capital in excess of Par-Preferred stock(84000-60000)		24000
1-Jul	Cash(15000*8)	120000
	Common stock(15000*5)		75000
	Paid-in-capital in excess of Par-Common stock(120000-75000)		45000
1-Sep	Patent	28000
	10% Preferred stock(450*50)		22500
	Paid-in-capital in excess of Par-Preferred stock(28000-22500)		5500
1-Dec	Cash(8000*8.50)	68000
	Common stock(8000*5)		40000
	Paid-in-capital in excess of Par-Common stock(68000-40000)		28000
31-Dec	Income summary	259000
	Retained Earnings		259000