The stockholders' equity accounts of Neer Corporationon Jan. 1, 2010 were as follow:
Preferred stock (8%, $50 par, cumulative, 10,000 shares authorized) $400,000
Common Stock ($1 stated value, 2,000,000 sharesauthorized) 1,000,000
Paid in capital in excess of par value - preferredstock 100,000
Paid in capital in excess of stated value - commonstock 1,450,000
Retainedearnings 1,816,000
treasury stock - common (10,000shares) 50,000
During 2010, the corporation had the ff transactions andevents petaining to itsl stockholders' equity
Feb 1. Issued 25,000 shares of common stock for$120,000
Apr 14 Sold 6,000 shares of treasury stock - common for$33,000
Sept 3 Issued 5,000 shares of common stock for a patent valuedat $35,000
Nov. 10 Purchased 1,000 shares of common stock for thetreasury at a cost of $6,000
Dec 31 Determined that net income for the year was$ 452,000
No dividend were declared during the year
a. journalize the transactions and the closing entry for netincome
b. Enter the beginning balances in the accounts, and post thejournal entries to the stockholders equity accounts (use J5 for theposting reference)
c. Prepare a stockholders' equity section at Dec. 31,2010 including the disclosure of the preferred dividends inarrears.