Correct. | | |
Journalize the transactions and the closing entry for net income. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Date | Account / Description | Debit | Credit | Feb. 1 | Cash | $ 25000 | | | Common stock | | $ 15000 | | Paid-in cap. in excess of stated value-Comm. stock | | $ 10000 | Mar. 20 | Treasury stock-Common | $ 12000 | | | Cash | | $ 12000 | | | | | June 14 | Cash | $ 36000 | | | Treasury stock-Common | | $ 32000 | | Paid-in cap. from common treasury stock | | $ 4000 | Sept. 3 | Patent | $ 17000 | | | Common stock | | $ 10000 | | Paid-in cap. in excess of stated value-Comm. stock | | $ 7000 | Dec. 31 | Income summary | $ 340000 | | | Retained earnings | | $ 340000 | |

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Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J1 for the posting reference.) (If answer is zero, please enter 0. Do not leave any fields blank.) -------------------------------------------------
Preferred Stock | ------------------------------------------------- | -------------------------------------------------
Date | ------------------------------------------------- | -------------------------------------------------
Explanation | -------------------------------------------------
Ref. | -------------------------------------------------
Debit | -------------------------------------------------
Credit | -------------------------------------------------
Balance | Jan. | 1 | Balance |  | | | 300000 | -------------------------------------------------
Common Stock |