Analyzing and Identifying Financial Statement Effects of Stock Transactions The stockholders' equity section of Gupta Company at December 31, 2014, 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 value--preferred stock 68,000 Paid-in capital in excess of par value--common stock 200,000 Retained earnings 270,000 During 2015, the following transactions occurred: Jan. 10 Issued 36,000 shares of common stock for $17 cash per share. Jan. 23 Purchased 8,800 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 4,000 shares of preferred stock for $136,000 cash. Nov. 15 Sold 1,800 of the treasury shares acquired January 23 for $24 cash per share. Required a. Using the financial statement effects template, illustrate the effects of each transaction. b. Prepare the journal entries for these transactions. C. Post the journal entries from b to the related T-accounts. d. Indicate the impact of each transaction on the calculation of basic EPS. e. Prepare the December 31, 2015, stockholders' equity section of the balance sheet assuming the company reports 2015 net income of $59,000. Financial statement effects template Journal Entries T-Accounts Impact on Basic EPS Stockholders' Equity Section + 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 1/10 Issued common stock $ 0 + $ 0 = $ 0 + $ 0 + $ 0 $ 0 $ 0 - $ 0 = $ 0 1/23 Purchased treasury stock 0 + 0 = 0 0 + 0 0 0 = 0 3/14 Sold treasury stock 0 + 0 = 0 + 0 + 0 0 0 = 0 7/15 Issued preferred stock 0 + 0 = 0 + 0 + 0 0 0 = 0 11/15 Sold treasury stock 0 + 0 = 0 + 0 + 0 0 0 0