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 parvalue, 350.000 shares authorized 120,000 shares issued and outstanding $600,000 Paid-in capital in excess of par value Retained earnings During the current year, the following transactions occurred: 600.000 346,000 Jan. 5 Issued 10,000 shares of common stock for $12 cash per share. Jan. 18 Purchased 4,000 shares of common stock for the treasury at $14 cash per share. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $17 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%, $22 par value preferred stock for $32 cash per share. This is the first issuance of preferred shares from the 50,000 authorized share (e) Use the financial statement effects template to indicate the effects of each transaction. Use negative signs with answers, when appropriate. Balance Sheet Income Statement Transaction Cash Asset Noncash Assets Liabilities + Jans Contributed Earned Capital + Capital Net Ravenue Expenses Income Jan. 18 0 0 Mar. 12 0 July 17 D 0 0 0 Oct. 1 0 0 0 (b) Prepare the current year stockholders' equity section of the balance sheet assuming that the company reports net income of $72,500 for the year. Use a negative sign with your answer for treasury.stock Paid-in capital Stockholders' Equity 8% Preferred stock $22 par value, 50.000 shares authorized, 5,000 shares issued and outstanding S Common stock $5 par value, 350,000 shares authorized 130,000 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 Hetained earnings Less Treasury stock (2.500 shares) at cost (use a negative sign with your answer) Total Stockholders' Equity 0 05 0 0 D