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 34,000 shares of common stock for $17 cash per share.
Jan. 23	Purchased 8,600 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 3,800 shares of preferred stock for $134,000 cash.
Nov. 15	Sold 1,600 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. Income Statement Noncash Asset Balance Sheet Contrib. Liabilities Capital $ + $ Earned Capital Contra- Equity Cash Asset + + Revenues Expenses Net Income Transaction 1/10 Issued common stock $ + $ = + $ $ $ $ $ + + + + + + 1/23 Purchased treasury stock 3/14 Sold treasury stock 7/15 Issued preferred stock 11/15 Sold treasury stock + = + + + + + = Financial statement effects template Journal Entries T-Accounts Impact on Basic EPS Stockholders' Equity Section General Journal Description Date Debit Credit 1/10 Common Stock 1/23 3/14 Treasury stock 7/15 Preferred stock 11/15 Treasury stock Financial statement effects template Journal Entries T-Accounts Impact on Basic EPS Stockholders' Equity Section Cash (A) Preferred Stock (SE) Common Stock (SE) Treasury Stock (XSE) Additional Paid-in Capital (SE) 1/10 1/10 1/10 1/10 1/10 1/23 1/23 1/23 1/23 1/23 3/14 3/14 3/14 3/14 3/14 7/15 7/15 7/15 7/15 7/15 11/15 11/15 11/15 11/15 11/15