Analyzing and Identifying Financial Statement Effects of Stock Transactions McNichols Corp. reports the following transactions relating to its stock accounts. Jan. 15 Issued 25,000 shares of $5 par value common stock at $17 cash per share. Jan. 20 Issued 6,000 shares of $50 par value, 8% preferred stock at $78 cash per share. Mar. 31 Purchased 3,000 shares of its own common stock at $20 cash per share. June 25 Sold 2,000 shares of the treasury stock at $26 cash per share. July 15 Sold the remaining 1,000 shares of treasury stock at $19 cash per share. Required a. Using the financial statement effects template, illustrate the effects of these transactions. HINT: For Contributed Capital, enter the par value of stock in the first answer box and additional paid-in capital in the second box. Balance Sheet Liabilities + Contrib. Capital + Earned Capital - Contra-Equity Income Statement Transaction Cash Asset + Noncash Assets - 1/15 Revenues - Expenses = Net Income 1/20 3/31 6/25 7/15 b. Prepare the journal entries for these transactions. General Journal Date Description Debit Credit 1/15 Common Stock 1/20 Preferred stock 3/31 6/25 Additional paid-in capital 7/15 Cash Common Stock (SE) Treasury Stock (XSE) c. Post the journal entries from b to the related T-accounts. Cash (A) Preferred Stock (SE) 1/15 1/15 1/20 1/20 3/31 3/31 6/25 7/15 7/15 TITT 1/15 1/20 3/31 6/25 7/15 1/15 1/20 3/31 6/25 7/15 6/25 Additional Paid-in Capital (SE) 1/15 1/20 3/31 6/25 7/15