4 Incomplete answer Marked out of 25.00 Flag question Analyzing and Identifying Financial Statement Effects of Stock Transactions The stockholders' equity section of Gupta Company at December 31, 2014, follows. 8% preferred stock, $25 par value, 50,000 shares authorized; 6,800 shares issued and outstanding Common stock, $10 par value, 200,000 shares authorized; $170,000 50,000 shares issued and outstanding 500,000 Paid-in capital in excess of par value--preferred stock 68,000 Paid-in capital in excess of par value--common stock Retained earnings 200,000 270,000 During 2015, the following transactions occurred: Jan. 10 Issued 34,000 shares of common stock for $17 cash per share. Jan. 23 Purchased 8,600 shares of common stock for the treasury at $19 cash per share. Mar. 14 Sold one-half of the treasury shares acquired January 23 for $21 cash per share. July 15 Issued 3,800 shares of preferred stock for $134,000 cash. Nov. 15 Sold 1,600 of the treasury shares acquired January 23 for $24 cash per share. Required a. Using the financial statement effects template, illustrate the effects of each transaction. b. Prepare the journal entries for these transactions. c. Post the journal entries from b to the related T-accounts. d. Indicate the impact of each transaction on the calculation of basic EPS. e. Prepare the December 31, 2015, stockholders' equity section of the balance sheet assuming the company reports 2015 net income of $59,000. Financial statement effects template Journal Entries T-Accounts Impact on Basic EPS Stockholders' Equity Section Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Income Statement Transaction 1/10 Issued common stock $ Cash Asset 0 + $ + Noncash Asset = Liabilities + Contrib. Capital Earned 0 = $ 0+ $ 0 + $ Contra- Capital - Equity Revenues Expenses Net Income 0-$ 0 $ 0-$ 0 $ 0 e. Prepare the December 31, 2015, stockholders' equity section of the balance sheet assuming the company reports 2015 net income of $59,000. Financial statement effects template Journal Entries T-Accounts Impact on Basic EPS Stockholders' Equity Section Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Income Statement Transaction Cash Asset + Noncash Asset = Liabilities + Contrib. Capital + Earned Capital Contra- Equity Revenues - Expenses = Net Income 1/10 Issued common stock $ 0 + $ 0 = $ 0 + $ 0 + $ 0 $ 0 $ 0 $ 0 = $ 0 1/23 Purchased treasury stock 0 + 0 = 0 + 0+ 0 0 0 0 = 0 3/14 Sold treasury stock 0 + 0 = 0 + 0 + 0 0 0 0 || 0 7/15 Issued preferred stock 0+ 0 = 0 + 0+ 0 0 0 0 = 0 11/15 Sold treasury stock 0 + 0 = 0 + 0+ 0 0 0 0 = 0 Please answer all parts of the question. d. Indicate the impact of each transaction on the calculation of basic EPS. e. Prepare the December 31, 2015, stockholders' equity section of the balance sheet assi Financial statement effects template Journal Entries T-Accounts Impact o General Journal Date Description Debit Credit 1/10 Cash 0 0 Common Stock 0 0 Additional paid-in capital 0 0 1/23 Treasury stock = 0 0 Cash 0 0 3/14 Cash 0 0 Treasury stock 0 0 Additional paid-in capital 0 0 7/15 Cash Preferred stock 0 0 0 0 Additional paid-in capital 0 0 11/15 Cash Treasury stock 0 0 0 0 0 0 Additional paid-in capital Please answer all parts of the question. a. Using the financial statement effects template, illustrate the effects of each transaction. b. Prepare the journal entries for these transactions. c. Post the journal entries from b to the related T-accounts. d. Indicate the impact of each transaction on the calculation of basic EPS. e. Prepare the December 31, 2015, stockholders' equity section of the balance sheet assuming the company reports 2015 net income of $59,000. Financial statement effects template Journal Entries T-Accounts Impact on Basic EPS Stockholders' Equity Section Cash (A) Preferred Stock (SE) Common Stock (SE) Treasury Stock (XSE) 1/10 0 0 1/10 0 0 1/10 0 0 1/10 0 0 1/23 0 0 1/23 0 0 1/23 0 0 1/23 0 0 3/14 0 0 3/14 0 0 3/14 0 0 3/14 0 0 7/15 0 0 7/15 0 0 7/15 0 0 7/15 0 0 11/15 0 0 11/15 0 0 11/15 0 0 11/15 0 0 Additional Paid-in Capital (SE) 1/10 0 0 1/23 0 0 3/14 0 0 7/15 0 0 11/15 0 0 Please answer all parts of the question. b. Prepare the journal entries for these transactions. c. Post the journal entries from b to the related T-accounts. d. Indicate the impact of each transaction on the calculation of basic EPS. e. Prepare the December 31, 2015, stockholders' equity section of the balance sheet assuming the company reports 2015 net income of $59,000. Financial statement effects template Journal Entries T-Accounts Impact on Basic EPS Stockholders' Equity Section 1/10 Increase 1/23 3/14 7/15 11/15 Please answer all parts of the question. Previous Save Answers Financial statement effects template Journal Entries T-Accounts Impact on Basic EPS Stockholders' Equity Section Do not use negative signs with answers. Paid-in capital: Stockholders' Equity 8% Preferred stock, $25 par value, 50,000 shares authorized; shares issued and outstanding $ 0 Common stock, $10 par value, 200,000 shares authorized; shares issued Additional paid-in capital Paid-in capital in excess of par value--Preferred stock Paid-in capital in excess of par value--Common stock Paid-in capital from Treasury stock Total paid-in capital Retained earnings Less: Treasury stock at cost Total stockholders' equity Please answer all parts of the question. 0 $ 0 0 0 0 0 0 0 0 0 $ 0