Question - The stockholders' equity accounts of Castle Corporation on January 1, 2017, were as follows.
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Preferred Stock (8%, $48 par, 10,000 shares authorized)
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$384,000
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Common Stock ($1 stated value, 2,050,000 shares authorized)
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1,500,000
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Paid-in Capital in Excess of Par-Preferred Stock
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140,000
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Paid-in Capital in Excess of Stated Value-Common Stock
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1,450,000
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Retained Earnings
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1,750,000
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Treasury Stock (10,500 common shares)
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52,500
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During 2017, the corporation had the following transactions and events pertaining to its stockholders' equity.
Feb. 1 Issued 25,000 shares of common stock for $124,000.
Apr. 14 Sold 6,000 shares of treasury stock-common for $33,700.
Sept. 3 Issued 4,900 shares of common stock for a patent valued at $35,100.
Nov. 10 Purchased 1,100 shares of common stock for the treasury at a cost of $5,700.
Dec. 31 Determined that net income for the year was $420,000.
Journalize the transactions and the closing entry for net income.