Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity of Verrecchia Company at December 31, 2011, follows:

Common stock, $ 5 par value, 350,000 shares authorized; 130,000 shares issued and outstanding	$ 650,000
Paid-in capital in excess of par value	600,000
Retained earnings	346,000

During 2012, 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 $13 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 $12 cash per share. Oct. 1 Issued 5,000 shares of 8%, $19 par value preferred stock for $30 cash per share. This is the first issuance of preferred shares from the 50,000 authorized shares.

(b) Prepare the December 31, 2012, 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, $19 par value, 50,000 shares authorized, 5,000 shares issued and outstanding
Common stock, $5 par value, 350,000 shares authorized; 140,000 shares issued
Additional paid-in capital
Paid-in capital in excess of par value-preferred stock	Answer
Paid-in capital in excess of par value-common stock	670000
Paid-in capital from treasury stock	Answer	Answer
Total paid-in capital		Answer
Retained earnings		418500
		Answer
Less: Treasury stock (2,500 shares) at cost (use a negative sign with your answer)		Answer
Total Stockholders' Equity		$ Answer