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, 896 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. Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Income Statement Noncash Contrib. Earned Contra- Transaction Cash Asset Asset Liabilities Capital Capital Equity Revenues Expenses = Net Income 1/15 $ 0 X + $ 0 = $ 0 0 + $ 0 x + $ 0 $ 0$ 0 - $ 0 = $ 0 1/20 0 X + 0 = 0 + 0x + 0 0- 0 3/31 0X + 0 = 0+ 0 OX 0 0 = 0 6/25 0 X + 0 = 0+ 0 X + 0 0X 0 - 0 = 07 7/15 0 X + 0 = 0+ 0x + 0 - OX 0 = 0 + = + + 0 0 + 0 Credit 0 olx 0X 0 0X b. Prepare the journal entries for these transactions. General Journal Date Description Debit 1/15 Cash 340,000 Common Stock 0 Additional paid-in capital 0 1/20 Cash OX Preferred stock 0 Additional paid-in capital 0 3/31 Treasury stock 0 X Cash 0 6/25 Cash OX Additional paid-in capital 0 Treasury stock 0 7/15 Cash OX Additional paid-in capital + OX Treasury stock 0 0 0X 0 OX 0 0 C Common Stock (SE) Preferred Stock (SE) 0 0 0 OX c. Post the journal entries from b to the related T-accounts. Cash (A) 1/15 0x 0 1/15 1/20 OX 0 1/20 3/31 OX 3/31 6/25 OX 0 6/25 7/15 OX 0 7/15 1/15 1/20 0 0 0 0 0 0 0 0 0 3/31 6/25 7/15 0 0 0 0 0 Treasury Stock (XSE) 1/15 0 0 1/20 0 0 OX 0 3/31 6/25 7/15 0 0 X 0 Additional Paid-in Capital (SE) 0 OX 1/15 1/20 0 OX 0 3/31 6/25 0 OX 7/15 0X 0