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: 150.000 shares issued and outstanding $750,000 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 896, 525 par value preferred stock for $35 cash per share. This is the first issuance of preferred share (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 Liabilities Contributed Capital + Earned Capital + Revenue Expenses Net Income Transaction Cash Asset +Noncash Assets Jan 5 Jan. 18 Mar. 12 July 17 Oct 1 My Subscriptions Jan 5 Jan 18 Mar. 12 July 17 Oct. 1 (b) Prepare the current year stockholders' equity section of the balance sheet assuming that the company reports net income of 572,500 for the year. Use a negative sigo with your answer for treasurystock Stockholders' Equity Paid in capital S Preferred stock. 525 par value 50.000 shares authorized 5.000 shares issued and outstanding Common stock 55 par value 350.000 shares authorized: 160,000 shares issued Additional paid in capital Pald in capital in excess of par value preferred stock Pald-in capital in excess of par value-common stock Paldin capital from treasury stock Total pald-in capital Retained earning Less Treasury stock (2.500 shares) at cost use a negative in with your answer Total Stockholders Equity