Identifying Financial Statement Effects of Stock Issuance and Repurchase On January 1, Arcola Company issues 9,000 shares of $100 par value preferred stock at $400 cash per share. On March 1, the company repurchases 9,000 shares of previously issued $1 par value common stock at $256 cash per share. Use the financial statement effects template to record these two transactions. Use negative signs with answers, if appropriate.

				Balance Sheet								Income Statement
			Noncash				Contrib.		Earned
Transaction	Cash Asset	+	Assets	=	Liabilities	+	Captial	+	Capital		Revenues	-	Expenses	=	Net income
Issue shares of preferred stock	Answer		Answer		Answer		Answer		Answer		Answer		Answer		Answer
Repurchase shares of common stock	Answer		Answer		Answer		Answer		Answer		Answer		Answer		Answer