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. Sold the remaining 1,250 shares of treasury stock at $19 cash per share. July 15 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. Income Statement Noncash Earned Capital Contra- Equity Transaction Cash Asset + Asset = Balance Sheet Contrib. Liabilities Capital 0 + $ 255,000 234,000 + Revenues Expenses Net Income 1/15 $ + $ O $ + $ 0 0 $ 0 $ O $ 0 1/20 + 0 II O + + 0 0 0 0 11 o 3/31 255,000 234,000 (70,000) 58,500 23,750 + 0 0 > + 0 + 0 0 o 6/25 + = > + 0 x + 0 0 70,000 (45,000) (25,000) 0 o o II o o o o 7/15 + o + 489,000 x + 0 O 0 O o 11 > b. Prepare the journal entries for these transactions. General Journal Description Date Debit Credit 1/15 Cash 255,000 0 Common Stock 0 75,000 180,000 Additional paid-in capital - 0 1/20 Cash 234,000 Preferred stock 0 150,000 84,000 0 Additional paid-in capital 3/31 Treasury stock Cash 70,000 . 0 70,000 6/25 Cash 58,500 0 13,500 45,000 0 Additional paid-in capital Treasury stock 7/15 Cash Additional paid-in capital Treasury stock 0 23,750 1,250 0 25,000 Preferred Stock (SE) Common Stock (SE) 0 0 0 0 X C. Post the journal entries from b to the related T-accounts. Cash (A) 1/15 OX 0 1/15 1/20 1/20 3/31 OX 3/31 6/25 OX 07 6/25 7/15 0 x 0 7/15 0 0 O 1/15 1/20 3/31 6/25 0 0 0 O 0 0 0 0 0 0 7/15 0 0 Treasury Stock (XSE) 0 0 1/15 1/20 O 3/31 Ox 0 6/25 0 OX 7/15 07 OX Additional Paid-in Capital (SE) 0 Ox 1/15 1/20 0 0 O 3/31 6/25 0 0X 7/15 OX