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WileyPLUS Secure https://edugen.wileyplus.com/eduger/student/manfrun. Home Read, Study & Practice Assignment> Open Assignment Assignment Gradebook ORION Downloadable eTextbook MESSAGE MY INSTRUCTOR RU SCREEN ASSIGNMENT RESOURCES Problem 11-3A Graded Homework The stockholders\' equity accounts of Castle Corporation on January 1, 2017, were as follows. 442,000 Preferred Stock (8%, $52 par, cumulative, 10,500 shares authorized) Common Stock ($1 stated value, 2,000,000 shares authorized) Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Retained Earnings Treasury Stock (10,000 common shares) Review Results by Study obiective 100,000 1,450,000 1,850,000 017, 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 Sept. 3 Issued 4,700 shares of common stock for a patent valued at $34,3 Dec. 31 Determined that net income for the year was $435,000. No dividends were declared during the year hares of common stock for the treasury at a cost of $5,800 Dournalize the transactions and the dlosing entry for net income. (Record journal entries in the order presented in the problem. Credit accoun indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account Date Account Titles and Explanation Feb. 1 Cash Debit Credit 124,000 25,00D Common Stock 99,000 Paid-in Capital in Exces

Solution

Date

Account details & Explanation

Debit

Credit

Feb 1

Cash

124000

Common stock

25000

Paid-in capital in excess of par value(124000 - 25000)

99000

April 14

Cash

32000

Paid-in Capital

5900

Treasury Stock(32000 - 5900)

26100

Sept 3

Patent

34300

Common stock

4700

Paid-in capital(34300 - 4700)

29600

Nov 10

Treasury Stock

5800

Cash

5800

Dec 31

Income Summary

435000

Retained Earning

435000

Preferred Stock

Date

Explanation

Ref

Debit

Credit

Balance

Jan 1

Balance

442000

Common Stock

Date

Explanation

Ref

Debit

Credit

Balance

Jan 1

Balance

1350000

Feb 1

J5

25000

1375000

Sep 3

J5

4700

1379700

Paid In Capital in Excess of Par – Preferred Stock

Date

Explanation

Ref

Debit

Credit

Balance

Jan 1

100000

Paid In Capital in Excess of Stated Value – Common Stock

Date

Explanation

Ref

Debit

Credit

Balance

Jan 1

1450000

Feb 1

99000

1549000

Sep 3

29600

1578600

Paid In Capital from Treasury Stock

Date

Explanation

Ref

Debit

Credit

Balance

April 14

5900

Retained Earnings

Date

Explanation

Ref

Debit

Credit

Balance

Jan1

1850000

Dec 31

435000

2285000

Treasury Stock

Date

Explanation

Ref

Debit

Credit

Balance

Jan 1

50000

April 14

26100

76100

Nov 10

5800

70300

Date	Account details & Explanation	Debit	Credit
Feb 1	Cash	124000
	Common stock		25000
	Paid-in capital in excess of par value(124000 - 25000)		99000
April 14	Cash	32000
	Paid-in Capital		5900
	Treasury Stock(32000 - 5900)		26100
Sept 3	Patent	34300
	Common stock		4700
	Paid-in capital(34300 - 4700)		29600
Nov 10	Treasury Stock	5800
	Cash		5800
Dec 31	Income Summary	435000
	Retained Earning		435000