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, 350,000 shares authorized; 120,000 shares issued and outstanding $ 600,000 Paid-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 $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 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 Contributed Capital Net Income Liabilities + Earned Capital 0 + Revenue 0 Expenses 0 0 0 0 Transaction Cash Asset + Noncash Assets = Jan. 5 0 0 Jan, 18 0 0 Mar. 12 0 0 July. 17 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Oct. 1 0 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 $72,500 for the year. Use a negative sign with your answer for treasury stock, Stockholders' Equity Paid-in capital 8% Preferred stock, $22 par value, 50,000 shares authorized, 5,000 shares issued and outstanding $ 0 Common stock, $5 par value, 350,000 shares authorized: 130,000 shares issued 0 $ 0 Additional paid-in capital Paid-in capital in excess of par value-preferred stock 0 Paid-in capital in excess of par value-common stock 0 Paid-in capital from treasury stock 0 0 Total paid-in capital 0 Retained earnings 0 0 0 0 Less: Treasury stock (2,500 shares) at cost (use a negative sign with your answer) 0 Total Stockholders' Equity $ 0 0