Question 5 No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Question 5 Irwin Corporation has been authorized to issue 21,000 shares of $100 par value, 10%, preferred stock and 1,004,400 shares of no-par common stock. The corporation assigned a $2.70 stated value to the common stock. At December 31, 2017, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock$120,000Paid-in Capital in Excess of Par—Preferred Stock22,000Common Stock1,004,400Paid-in Capital in Excess of Stated Value—Common Stock2,715,600Treasury Stock (720 common shares)7,920Paid-in Capital from Treasury Stock1,080Retained Earnings82,500 The preferred stock was issued for land having a fair value of $142,000. All common stock issued was for cash. In November, 1,080 shares of common stock were purchased for the treasury at a per share cost of $11. In December, 360 shares of treasury stock were sold for $14 per share. No dividends were declared in 2017. Solution a) Journal Entries (Amounts in $) b) IRWIN CORPORATION Balance Sheet (Partial) December 31, 2017 (Amounts in $) No.Account Titles and ExplanationDebitCredit1Land142,000Preferred Stock120,000Paid-in Capital in Excess of Par Value-Preferred Stock22,0002Cash3,720,000Common Stock1,004,400Paid-in Capital in Excess of Stated Value-Common Stock2,715,6003Treasury Stock (1,080 shares*$11)11,880Cash11,8804Cash (360 shares*$14)5,040Treasury Stock (360 shares*$11 per share)3,960Paid-in Capital from Treasury Stock (360 shares*$3)1,080.