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, 500,000 shares authorized; 350,000 shares issued and outstanding $1,750,000 Paid-in capital in excess of par value 800,000 Retained earnings 634,000 per share. During the current year, the following transactions occurred: Jan. 5 Issued 10,000 shares of common stock for $13 cash per share. Jan. 18 Repurchased 4,000 shares of common stock at $16 cash Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $19 cash per share. July 17 Sold 500 shares of treasury stock for $14 cash per share. Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $36 cash per share. This is the first issuance of preferred shares from the 50,000 authorized preferred shares. (a) Use the financial statement effects template to indicate the effects of each transaction. Use negative signs with answers, when appropriate. Balance Sheet Income Statement Net Income + Noncash Assets = Liabilities + + Earned Capital 0 Transaction Jan. 5 Revenue Expenses 0 0 0 0 Jan. 18 0 Contributed Capital 130,000 (64,000) 19,000 7,000 180,000 0 Cash Asset 130,000 (64,000) 19,000 7,000 180,000 o od 0 Mar. 12 0 0 0 ooooo 0 July. 17 0 0 0 0 oo Oct. 1 0 0 0 0 (a) Use the financial statement effects template to indicate the effects of each transaction. Use negative signs with answers, when appropriate. Balance Sheet Income Statement Net Transaction Cash Asset Liabilities + + Earned Capital 0 Revenue + Noncash Assets = 0 Income Expenses 0 0 0 0 Jan. 5 Jan. 18 0 0 Contributed Capital 130,000 (64,000) 19,000 7,000 180,000 0 0 0 0 130,000 (64,000) 19,000 7,000 180,000 Mar. 12 O 0 0 0 0 0 July. 17 0 0 0 0 0 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 $76,900 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 $ 125,000 Common stock, $5 par value, 500,000 shares authorized; 360,000 shares issued 1,800,000 $ OX Additional Paid-in capital Paid-in capital in excess of par value preferred stock 55,000 Paid-in capital in excess of par value-common stock 880,000 Paid-in capital from treasury stock 2,000 0 x Total paid-in capital 2,862,000 Retained earnings 634,000 x 3,496,000 * Less: Treasury stock (2,500 shares) at cost (use a negative sign with answer) (40,000) Total Stockholders' Equity 3,456,000 x $