Lincoln-Priest, Inc., was organized in 2011. At December 31, 2011, the Lincoln-Priest balance sheet reported the following stockholders' equity:
Paid-in Capital
Prefferred stock, 7%, $40 par, 110,000 shares authorized, none issued $ 0
Common stock, $1 par, 520,000 shares authorized, 61,000 shares issued 61,000
Paid-in capital in excess of par-common 41,000
Total paid-in capital 102,000
Retained earnings 29,000
Total stockholders' equity 131,000
Requirements
1. During 2012, the company completed the following selected transactions. Journalize each transaction. Explanations are not required.
a. Issued for cash 1,300 shares of preferred stock at par value.
b. Issued for cash 2,400 shares of common stock at a price of $5 per share.
c. Net income for the year was $74,000, and the company declared no dividends. Make the closing entry for net income.