P12-30A Issuing stock and preparing the stockholders' equity section of the balance sheet Lincoln-Priest, Inc.,

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P12-30A
Issuing stock and preparing the stockholders' equity section of the balance sheet Lincoln-Priest, Inc., was organized in 2011. At December 31, 2011, the Lincoln- Priest balance sheet reported the following stockholders' equity:
LINCOLN-PRIEST, INC.
Stockholders' Equity
December 31,2011
Paid-in Capital:
Preferred stock, 7%, $40 par, 110,000 shares authorized, none issued $0
Common stock, $1 par, 520,000 shares authorized, 61,000 shares issued and outstanding
………………………………………………………………………. $61,000
Paid-in capital in excess of par—common $41,000
Total paid-in capital $102,000
Retained earnings $29,000
Total stockholders' equity………………………………. $131,000

Requirements
1. During 2012, the company completed the following transactions. Journalize each transaction. Explanations are not required.
a. Issued for cash 1,300 shares of preferred stock at par value.
b. Issued for cash 2,400 shares of common stock a a price of $5 per share.
c. Net income for the year was $74,000, and the company declared no dividends. Make
the closing entry for net income.
2. Prepare the stockholders' equity section of the Lincoln-Priest
December 31, 2012.