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; 130,000 shares issued and outstanding	$ 650,000
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 $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. Income Statement (a) Use the financial statement effects template to indicate the effects of each transaction. Use negative signs with your answers, when appropriate. Balance Sheet Contributed Earned Transaction Cash Asset + Noncash Assets = Liabilities Capital Capital Jan. 5 120,000 0 0 120,000 0 Jan. 18 (52,000) 0 (52,000) 0 Mar. 12 17,000 0 0 17,000 0 July. 17 6,000 0 0 6,000 0 Oct. 1 150,000 0 0 150,000 0 Revenue 0 Expenses 0 Net Income 0 0 0 0 0 0 0 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 896 Preferred stock, $19 par value, 50,000 shares authorized, 5,000 shares issued and outstanding $ 95,000 Common stock, $5 par value, 350,000 shares authorized; 140,000 shares issued 700,000 $ 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 670,000 Paid-in capital from treasury stock 3,500 OX Total paid-in capital 1,523,500 Retained earnings 418,500 1,942,000 Less: Treasury stock (2,500 shares) at cost (use a negative sign with your answer) (26,000) X Total Stockholders' Equity $ 1,916,000 X Check