Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity of Verrecchia Company at December 31, 2013, 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 2014, 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.

b) Prepare the December 31, 2014, stockholders' equity section of the balance sheet assuming that the company reports net income of $65,800 for the year.

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
Total paid-in capital
Retained earnings
Less: Treasury stock (2,500 shares) at cost		Answer
Total Stockholders' Equity		$ Answer