Question

ent CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Question 1 Blue Spruce Corporation is authorized to issue 24,500 shares of $50 par value, 10% preferred stock and 130,000 shares of $5 par value common stock. On January 1, 2020, the ledger contained the following stockholders' equity balances Preferred Stock (10,000 shares) Paid-in Capital in Excess of Par-Preferred Stock Common Stock (61,000 shares) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $500,000 66,000 305,000 650,000 320,000 During 2020, the following transactions occurred Feb. Mar. July Sept. 1 Issued 2,200 shares of preferred stock for land having a fair value of $121,000 1 Issued 1,300 shares of preferred stock for cash at $65 per share. 1 Issued 16,000 shares of common stock for cash at $7 per share. 1 Issued 350 shares of preferred stock for a patent. The asking price of the patient was $30,000. Market price for the preferred stock was $72 and the fair value for the patent was indeterminable 1 Issued 7,750 shares of common stock for cash at $7.50 per share. 31 Net income for the year was $255,000. No dividends were declared. Dec. Dec 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.) Date Account Titles and Explanation Debit Credit

Answer 1

1. Journal entries for recording the transactions and closing entry of net income is as shown below: