\\ The stockholders' equity of Verrecchia Company at December 31, 2008, follows:

\section*{Required}

a. Use the financial statement effects template to indicate the effects of each transaction.

b. Prepare the December 31,2009 , stockholders' equity section of the balance sheet assuming that the company reports net income of \(\$ 72,500\) for the year.

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Common stock, $5 par value. 350,000 shares authorized; 150,000 shares issued and outstanding... $750,000 Paid-in capital in excess of par value.. 600,000 Retained earnings 346,000