I don't know how to do the math for B Please show work and thank you!
Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity of Gaulin Company at the start of the current year follows: Common stock, $5 par value, 350,000 shares authorized; 250,000 shares issued and outstanding $1,250,000 Paid-in capital in excess of par value 600,000 Retained earnings 346,000 During the current year, the following transactions occurred: Jan. 5 Issued 10,000 shares of common stock for $12 cash per share. Jan. 18 Repurchased 4,000 shares of common stock at $15 cash per share. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $18 cash per share. July 17 Sold 500 shares of the remaining treasury stock for $13 cash per share. Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $35 cash per share. This is the first issuance of preferred shares from the 50,000 authorized shares. (a) Use the financial statement effects template to indicate the effects of each transaction. Use negative signs with your answers, when appropriate. Balance Sheet Income Statement Noncash Assets Cash Asset Liabilities + Earned Capital 0 Revenue 0 Expenses 0 Net Income 0 120000 0 0 0 0 0 Contributed Capital 120000 -60000 18000 6500 175000 0 Transaction Jan. 5 Jan. 18 Mar. 12 July. 17 Oct. 1 O -60000 18000 o o O O O 0 0 0 0 0 0 6500 0 0 0 0 0 0 175000 0 0 0 0 0 O $ (b) Prepare the current year stockholders' equity section of the balance sheet assuming that the company reports net income of $65,800 for the year. Use a negative sign with your answer for treasury stock. Stockholders' Equity Paid-in capital 8% Preferred stock, $25 par value, 50,000 shares authorized, 5,000 shares issued and outstanding $ Common stock, $5 par value, 350,000 shares authorized; 260,000 shares issued Additional paid-in capital Paid-in capital in excess of par value preferred stock Paid-in capital in excess of par value-common stock Paid-in capital from treasury stock (use a negative sign with your answer) Total paid-in capital Retained earnings Less: Treasury stock (2,500 shares) at cost Total Stockholders' Equity $ Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity of Gaulin Company at the start of the current year follows: Common stock, $5 par value, 350,000 shares authorized; 250,000 shares issued and outstanding $1,250,000 Paid-in capital in excess of par value 600,000 Retained earnings 346,000 During the current year, the following transactions occurred: Jan. 5 Issued 10,000 shares of common stock for $12 cash per share. Jan. 18 Repurchased 4,000 shares of common stock at $15 cash per share. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $18 cash per share. July 17 Sold 500 shares of the remaining treasury stock for $13 cash per share. Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $35 cash per share. This is the first issuance of preferred shares from the 50,000 authorized shares. (a) Use the financial statement effects template to indicate the effects of each transaction. Use negative signs with your answers, when appropriate. Balance Sheet Income Statement Noncash Assets Cash Asset Liabilities + Earned Capital 0 Revenue 0 Expenses 0 Net Income 0 120000 0 0 0 0 0 Contributed Capital 120000 -60000 18000 6500 175000 0 Transaction Jan. 5 Jan. 18 Mar. 12 July. 17 Oct. 1 O -60000 18000 o o O O O 0 0 0 0 0 0 6500 0 0 0 0 0 0 175000 0 0 0 0 0 O $ (b) Prepare the current year stockholders' equity section of the balance sheet assuming that the company reports net income of $65,800 for the year. Use a negative sign with your answer for treasury stock. Stockholders' Equity Paid-in capital 8% Preferred stock, $25 par value, 50,000 shares authorized, 5,000 shares issued and outstanding $ Common stock, $5 par value, 350,000 shares authorized; 260,000 shares issued Additional paid-in capital Paid-in capital in excess of par value preferred stock Paid-in capital in excess of par value-common stock Paid-in capital from treasury stock (use a negative sign with your answer) Total paid-in capital Retained earnings Less: Treasury stock (2,500 shares) at cost Total Stockholders' Equity $
