Analyzing and Identifying Financial Statement Effects of Stock Transactions The stockholders' equity section of Gupta Company at December 31, 2018, follows.

8% preferred stock, $25 par value, 50,000 shares authorized;
6,800 shares issued and outstanding	$170,000
Common stock, $10 par value, 200,000 shares authorized;
50,000 shares issued and outstanding	500,000
Paid-in capital in excess of par valuepreferred stock	68,000
Paid-in capital in excess of par valuecommon stock	200,000
Retained earnings	270,000

During 2019, the following transactions occurred:

Jan. 10	Issued 28,000 shares of common stock for $17 cash per share.
Jan. 23	Purchased 8,000 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 3,200 shares of preferred stock for $128,000 cash.
Nov. 15	Sold 1,000 of the treasury shares acquired January 23 for $24 cash per share.

Required e. Prepare the December 31, 2019, stockholders' equity section of the balance sheet assuming the company reports 2019 net income of $59,000.

This is the correct answer below; can you describe how to calculate each item?

Stockholder's Equity
Paid-capital
8% Preferred stock, $25 par value, 50,000 shares authorized
shares issued and outstanding (how do we figure this out?)	250,000
Common Stock, $10 par value, 200,000 shares authorized
shares issued (how do we figure this out?)	780,000	1,030,000
Additional paid in capital
Paid-in capital in excess of par value--Preferred stock	116,000
Paid-in capital in excess of par value--Common stock	396,000
Paid-in capital from Treasury stock	13,000	525,000
Total paid-in capital		1,555,000
Retained earnings		329,000
		1,884,000
Less: Treasury stock at cost		57,000
Total stockholders' equity		1,827,000