Question: the stockholders equity accounts of novak corporation on january 1...
The stockholders’ equity accounts of Novak Corporation on January 1, 2020, were as follows.
|Preferred Stock (8%, $52 par, 10,000 shares authorized)||$ 442,000|
|Common Stock ($1 stated value, 1,950,000 shares authorized)||1,350,000|
|Paid-in Capital in Excess of Par—Preferred Stock||115,000|
|Paid-in Capital in Excess of Stated Value—Common Stock||1,400,000|
|Treasury Stock (10,500 common shares)||52,500|
During 2020, the corporation had the following transactions and events pertaining to its stockholders’ equity.
|Feb.||1||Issued 26,000 shares of common stock for $122,000.|
|Apr.||14||Sold 5,700 shares of treasury stock—common for $32,700.|
|Sept.||3||Issued 5,100 shares of common stock for a patent valued at $36,000.|
|Nov.||10||Purchased 1,000 shares of common stock for the treasury at a cost of $6,000.|
|Dec.||31||Determined that net income for the year was $485,000.|
No dividends were declared during the year.
Journalize the transactions and the closing entry for net income.