Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders equity section of XPress Media Company for the current year follows.
| 8% preferred stock, $25 par value, 50,000 shares authorized; | |
| 10,080 shares issued and outstanding | $252,000 |
| Common stock, $10 par value, 200,000 shares authorized; | |
| 60,000 shares issued and outstanding | 600,000 |
| Paid-in capital in excess of par valuepreferred stock | 102,000 |
| Paid-in capital in excess of par valuecommon stock | 360,000 |
| Retained earnings | 444,000 |
During the year, the following transactions occurred. Jan. 10 Issued 33,600 shares of common stock for $18 cash per share. Jan. 23 Repurchased 9,600 shares of common stock at $20 cash per share. Mar. 14 Sold one-half of the treasury shares acquired January 23 for $22 cash per share. July. 15 Issued 3,120 shares of preferred stock for $153,600 cash. Nov. 15 Sold 1,200 of the treasury shares acquired January 23 for $26 cash per share. Required a. Use the financial statement effects template to indicate the effects from each of these transactions. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount.
| ($ in millions) | Balance Sheet | Income Statement |
| Transaction | Cash Asset | + | Noncash Assets | = | Liabilities | + | Contrib. Capital | + | Earned Capital | Revenues | | Expenses | = | Net Income |
| Jan. 10 | Answer | | Answer | = | Answer | | Answer | | Answer | Answer | | Answer | = | Answer |
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| Jan. 23 | Answer | | Answer | = | Answer | | Answer | | Answer | Answer | | Answer | = | Answer |
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| Mar. 14 | Answer | | Answer | = | Answer | | Answer | | Answer | Answer | | Answer | = | Answer |
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| July 15 | Answer | | Answer | = | Answer | | Answer | | Answer | Answer | | Answer | = | Answer |
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| Nov. 15 | Answer | | Answer | = | Answer | | Answer | | Answer | Answer | | Answer | = | Answer |
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Answer
b. Prepare the stockholders equity section of the balance sheet assuming the company reports net income of $145,200 for the current year. Note: Do not use a negative sign with any of your answers.
| XPRESS MEDIA COMPANY |
| Stockholders Equity |
| Paidin capital | | | | |
| | 8% preferred stock, $25 par value, 50,000 shares authorized; | | | |
| | Answer | shares issued and outstanding | Answer | |
| | Common stock, $10 par value, 200,000 shares authorized; | | | |
| | Answer | shares issued, (3,600 shares in treasury) | Answer | Answer |
| Additional paidin capital | | | | |
| | Paidin capital in excess of par valuepreferred stock | | Answer | |
| | Paidin capital in excess of par valuecommon stock | | Answer | |
| | Paidin capital from treasury stock | | Answer | Answer |
| Total paidin capital | | | | Answer |
| Retained earnings | | | | Answer |
| | | | | Answer |
| Less: Treasury stock (3,600 common shares) | | | | Answer |
| Total stockholders equity | | | | Answer |
