For Business Tutor- 48 hour deadline Part 1 P12-30A Issuing…

For Business Tutor- 48 hour deadline
Part 1
P12-30A
Issuing stock and preparing the stockholders’ equity section of the balance sheet.
Lincoln-Priest, Inc., was organized in 2011. At December 31, 2011, the Lincoln-Priest balance sheet reported the following stockholder’s equity:

Lincoln-Priest, INC.
Stockholder’s Equity
December 31, 2011
Paid in Capital:
Preferred stock, 7%, $40 par, 110,000 shares authorized, non issued $ 0
Common stock, $1 par, $20,000 shares authorized, 61,000 shares issued and outstanding 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 $131,0000


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. Issed for cash 2,300 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.
2. Prepare the stockholders’ equity section of the Lincoln Priest balance sheet at December 31, 2012.