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. 55 par value 350,000 shares authorized: 250.000 shares issued and outstanding $1,250,000 Pald.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 512 cash per share, Jan. 18 Repurchased 4.000 shares of common stock at 515 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%, 525 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 Contributed Transaction Cash Asset Capital Capital Expenses Income Jans 120,000 0 120,000 O Jan, 18 (60,0001 0 (60,000) 0 Mar. 12 18.000 07 Mily. 17 6,500 6.500 0 175.000 0 Earned Net Liabilities Assets O Revenue 0 0 0 O 0 0 O OV OV OV 18,000 0 O 0 OV OV O Oct. 175.000 0 0 (b) Prepare the current year stockholders' equity section of the balance sheet assuming that the company reports net income of 565,800 for the year, Use a negative sigo with your answer for treasury stock Stockholders' Equity Paidan capital Preferred stock 125 par value 50.000 shares authorised, 5,000 shares issued and outstandings 125,000 Common stock 35 par value. 250.000 shares authorized, 260,000 shares issued 1.300.000 S 1.425.000 Additional paid in capital Paid in capital in excess of par value preferred stock 50,000 Pald.in capital in excess of par value-colon stock 670,000 0 0 O 0 0 0 July 17 6,500 175,000 18.000 6,500 175,000 0 Oct. 1 0 0 0 0 0 0 (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, 525 par value. 50,000 shares authorized. 5.000 shares issued and outstanding 125.000 Common stock, ss par value, 350,000 shares authorized: 260,000 shares issued 1,300,000 $ 1.425,000 Additional paid-in capital Paid-in capital in excess of par value preferred stock 50,000 Paid in capital in excess of par value common stock 670,000 Paid in capital from treasury stock use a negative sign with your answer) 2.000 722.000 Total paid.in capital 1.647.000 x Retained earnings 319,500 X OX OX Less Treasury stock (2.500 shares) at cost OX Total Stockholders Equity Check Partially correct Marks for this submission: 47.00/5200
