Problems P15.1 (LO 1, 2. 3. 4) Excel Groupwork (Equity Transactions and Statement Preparation) On January 5, 2020, 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. Instructions Jan. 11 Feb. 1 July 29 Aug. 10 Dec. 31 Dec. 31 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. Purchased 1.800 shares of common stock at $17 per share. (Use cost method.) Sold the 1.800 treasury shares at $14 per share. Declared a $0.25 per share cash dividend on the common stock and declared the preferred dividend. Closed the Income Summary account. There was a $175.700 net income. 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 31, 2020.