The stockholders' equity accounts of Fleer Corporation on January 1, 2008, were as follows.   
 
Preferred Stock (8%, $50 par, cumulative, 10,000 shares authorized) $  400,000 
Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000 
Paid-in Capital in Excess of Par Value—Preferred Stock 100,000 
Paid-in Capital in Excess of Stated Value—Common Stock 1,450,000 
Retained Earnings 1,816,000 
Treasury Stock—Common (10,000 shares) 50,000 
 
 
During 2008, the corporation had the following transactions and events pertaining to 
its stockholders' equity.   
 
Feb. 1 Issued 25,000 shares of common stock for $120,000. 
Apr. 14 Sold 6,000 shares of treasury stock—common for $33,000. 
Sept. 3 Issued 5,000 shares of common stock for a patent valued at $35,000. 
Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000. 
Dec. 31 Determined that net income for the year was $452,000. 
 
 
No dividends were declared during the year. 
 

Instructions

a.  Journalize the transactions and the closing entry for net income. 
 
b.  Enter the beginning balances in the accounts, and post the journal entries to the 
stockholders' equity accounts. (Use J5 for the posting reference.) 
 
c.  Prepare a stockholders' equity section at December 31, 2008, including the disclosure 
of the preferred dividends in arrears. 
 
(c) Total stockholders' equity $5,350,000