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Problem 2 - Stock Transactions and Statement Preparation On January 5, 2017, 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 complete these transactions. Issued 20,000 shares of common stock for $16 per share. Issued 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. Reacquired 1,800 shares of common stock at $17 per share. Reissued 1,800 treasury shares at $14 per share. Declared a $0.25 per share cash dividends on common stock and declared the preferred dividend. Closed the Income Summary account. The company reported net income in the amount of $175,700. Jan. 11 Feb. 1 Jul. 29 Aug. 10 Dec. 31 Dec. 31 Required: 1. Prepare the journal entries for the transactions listed above. 2. Prepare the stockholders' equity section of the Phelps Corporation's balance sheet as of December 31, 2017. Scanned with CS CamScanner