P8-51 Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders' equity section of Medina Company at December 31, 2016, follows. 8% preferred stock, $25 par value, 50,000 shares authorized; 8,400 shares issued and outstanding Common stock, $10 par value, 200,000 shares authorized; $210,000 50,000 shares issued and outstanding Paid-in capital in excess of par value-preferred stock. Paid-in capital in excess of par value-common stock. Retained earnings 500,000 85,000 300,000 370,000 During 2017, the following transactions occurred. Jan. 10 Issued 28,000 shares of common stock for $18 cash per share. Jan. 23 Repurchased 8,000 shares of common stock at $20 cash per share. Mar. 14 Sold one-half of the treasury shares acquired January 23 for $22 cash per share. July 15 Issued 2,600 shares of preferred stock for $128,000 cash. Nov.15 Sold 1,000 of the treasury shares acquired January 23 for $26 cash per share. Required a. Use the financial statement effects template to indicate the effects from each of these transactions. b. Prepare the December 31, 2017, stockholders'equity section of the balance sheet assuming the com- pany reports 2017 net income of S121,000