On January $5,2025,$ Phelps Corporation received a charter granting the right to issue $5,000$ shares of $$100$ par value, $8\%$ cumulative and nonparticipating preferred stock, and $50,000$ shares of $$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 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.$

July $29$ Purchased $1,800$ shares of common stock at $$17$ pei share. $($Use cost method.$)$

Aug. $10$ Sold the $1\mathrm{.}800$ treasury shares at $$14$ per share.

Dec. $31$ Declared a $$0\mathrm{.}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\mathrm{.}700$ net income.

PHELPS CORPORATION Stcckholders' Equity

December $31,2025$

Capital Stock

Preferred Stock

$ $$

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