Analyzing and Identifying Financial Statement Effects of Stock Transactions McNichols Corp. reports the following transactions relating to its stock accounts.

Jan. 15	Issued 15,000 shares of $5 par value common stock at $17 cash per share.
Jan. 20	Issued 3,000 shares of $50 par value, 8% preferred stock at $78 cash per share.
Mar. 31	Purchased 3,500 shares of its own common stock at $20 cash per share.
June 25	Sold 2,250 shares of the treasury stock at $26 cash per share.
July 15	Sold the remaining 1,250 shares of treasury stock at $19 cash per share.

Required a. Using the financial statement effects template, illustrate the effects of these transactions. 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
1/15		+		=		+		+		-			-		=
1/20		+		=		+		+		-			-		=
3/31		+		=		+		+		-			-		=
6/25		+		=		+		+		-			-		=
7/15		+		=		+		+		-			-		=

b. Prepare the journal entries for these transactions.

General Journal
Date	Description	Debit	Credit
1/15	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
	Common Stock
	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
1/20	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
	Preferred stock
	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
3/31	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
6/25	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
	Additional paid-in capital
	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
7/15	Cash
	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital
	CashPreferred stockCommon stockTreasury stockAdditional paid-in capital

c. Post the journal entries from b to the related T-accounts.

Cash (A)
1/15	Answer	Answer
1/20	Answer	Answer
3/31	Answer	Answer
6/25	Answer	Answer
7/15	Answer	Answer

Preferred Stock (SE)
1/15	Answer	Answer
1/20	Answer	Answer
3/31	Answer	Answer
6/25	Answer	Answer
7/15	Answer	Answer

Common Stock (SE)
1/15	Answer	Answer
1/20	Answer	Answer
3/31	Answer	Answer
6/25	Answer	Answer
7/15	Answer	Answer

Treasury Stock (XSE)
1/15	Answer	Answer
1/20	Answer	Answer
3/31	Answer	Answer
6/25	Answer	Answer
7/15	Answer	Answer

Additional Paid-in Capital (SE)
1/15	Answer	Answer
1/20	Answer	Answer
3/31	Answer	Answer
6/25	Answer	Answer
7/15	Answer	Answer