On January 5, 2014, Phil's Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipation preferred stock, and 50,000 shares of $10 par value common stock. It then completed these transactions.
Jan 11 - Issued 20,000 shares of common stock at $16 per share
Feb 1 - Issued to Sands Corp. 4,000 shares of preferred stock for the following assets: equipment with a fair value of $50,000; a factory building with a fair value of $160,000; and land with an appraised value of $270,000.
July 29 - Purchased 1,800 shares of common stock at $17 per share. (Use cost method.)
Aug 10 Sold the 1,800 treasury shares at $14 per share
Dec 31 - Declared a $0.25 per share cash dividend on the common stock and declared the preferred dividend.
Dec 31 - Closed the income summary account. There was a $175,700 net income.
Instructions:
(a) Record the journal entries for the transactions listed above
(b) Prepare the stockholders' equity section of Phil's corporation's balance sheet as of December 31, 2014.