1 Not complete Marked out of 5.00 Flag question Analyzing and Identifying Financial Statement Effects of Stock Transactions McNichols Corp. reports the following transactions relating to its stock accounts. Jan. 15 Issued 20,000 shares of $5 par value common stock at $17 cash per share. Jan. 20 Issued 5,000 shares of $50 par value, 8% preferred stock at $78 cash per share. Mar. 31 Purchased 2,000 shares of its own common stock at $20 cash per share. June 25 Sold 750 shares of the treasury stock at $26 cash per share. July 15 Sold the remaining 750 shares of treasury stock at $19 cash per share. Required a. Using the financial statement effects template, illustrate the effects of these transactions. Expenses $ Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Income Statement Contra- Equity Revenues 0 $ - $ Noncash Contrib. Transaction Cash Asset + Asset Liabilities + Capital + Earned Capital - 1/15 $ 0 + $ 1/20 0 + 3/31 0 + 6/25 0 + 7/15 0 + ooooo 0 = 0 + $ 0 = 0 + 0 = 0 + 0 = 0 + 0 = 0 + ooooo 0 + $ 0 + 0 + 0 + 0 + ooooo 0 - 0 - 0 0 ooooo 0 0 0 0 0 = Net Income 0 = $ 0 = 0 = 0 0 = 0 0 = 0 ooooo 0 0 b. Prepare the journal entries for these transactions. General Journal Date 1/15 Description Debit Credit 0 0 Common Stock 0 0 1/20 Preferred stock 3/31 0 0 0 0 0 0 0 0 0 0 0 0 6/25 0 0 Additional paid-in capital 0 0 0 0 7/15 Cash 0 0 0 0 0 c. Post the journal entries from b to the related T-accounts. 1/15 1/20 3/31 6/25 7/15 Cash (A) Preferred Stock (SE) Common Stock (SE) Treasury Stock (XSE) ooooo 0 1/15 0 0 1/15 0 0 1/15 0 0 0 1/20 0 0 1/20 0 0 1/20 0 0 0 3/31 0 0 3/31 0 0 3/31 0 0 0 6/25 0 0 6/25 0 0 6/25 0 0 0 7/15 0 0 7/15 0 0 7/15 0 0 Additional Paid-in Capital (SE) 1/15 0 0 1/20 0 0 3/31 0 0 6/25 0 0 7/15 0 0