Transcribed Image Text: Enter the beginning balances in the accounts, and post the journal entries to the stockholders’ equity accounts. (Post entries in the order of journal entries presented in

Transcribed Image Text: Enter the beginning balances in the accounts, and post the journal entries to the stockholders’ equity accounts. (Post entries in
the order of journal entries presented in the previous part.)
Preferred Stock
Paid-in Capital in Excess of Par-Preferred Stock
Common Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Retained Earnings
Paid-in Capital from Treasury Stock
Treasury Stock
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> Transcribed Image Text: The stockholders’ equity accounts of Cullumber Company on January 1, 2022, were as follows.
Preferred Stock (8%, $50 par, cumulative, 10.000 shares authorized)
$ 375.000
Common Stock ($1 stated value, 1,900,000 shares authorized)
1,000,000
Paid-in Capital in Excess of Par-Preferred Stock
100,000
Paid-in Capital in Excess of Stated Value-Common Stock
1,400,000
Retained Earnings
1,750,000
Treasury Stock (10,000 common shares)
40.000
During 2022, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Issued 24,000 shares of common stock for $115,000.
Feb.
1
Apr.
14
Sold 5,500 shares of treasury stock-common for $32,000.
Sept.
3
Issued 4,700 shares of common stock for a patent valued at $34.000.
Nov.
10
Purchased 1,000 shares of common stock for the treasury at a cost of $5.700.
Dec
31
Determined that net income for the year was S400,000.
No dividends were declared during the year.
(a)
Your answer is correct.
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. If no entry is required, select “No
Entry” for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Feb. 1
Cash
115,000
Common Stock
Pald-In Capltal In Excess of Stated Value-Common Stock
Apr. 14
Cash
32,000
Pald-In Capltal from Treasury Stock
Treasury Stock
Sept. 3
Patents
34,000
Common Stock
Pald-In Capltal In Excess of Stated Value-Common Stock
Nov. 10 v
Treasury Stock
5,700
Cash
Dec. 31
Income Summary
400,000
Retalned Earnings

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