866 Chapter 15 Stockhoiders Equity PROBLEMS 3 4 P15-1 (Equity Transactions and Statement Preparation) On January 5, 2014, Phelps Corporation recived articipating D a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and non preferred stock, and 50,000 shares of $10 par value common stock. It then completed these transactions Issued 20,000 shares of common stock at $16 per share. Issued to Sanchez 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 Jan. 11 Feb. 1 XLSJuly 29 Purchased 1.800 shares of common sock 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 Phelps Corporation's balance sheet as of December 1. 2014