Question 1 Not complete Marked out of 10.00 p Flag question Identifying and Analyzing Financial Statement Effects of Stock Transactions Lipe Company reports the following transactions relating to its stock accounts. Feb. 20 issued 12,000 shares of $1 par value common stock at $20 cash per share Feb. 21 Issued 17,000 shares of $100 par value, 8% preferred stock at $225 cash per share. Jun. 30 Purchased 4,000 shares of its own common stock at $17 cash per share. Sep. 25 Sold 2,000 shares of the treasury stock at $23 cash per share Income Statement a. Using the financial statement effects template, illustrate the effects of these transactions. Use negative signs with answers when appropriate. When applicable, enter total amount for contributed capital. Balance Sheet Noncash Contrib. Earned Contra Transaction Cash Asset + Asset = Llabilities Capital Capital Equity 2/20: Issued common stock shares + 0 = 0 + 0 + + 0 0 2/21: Issued preferred stock shares. 0 + 0 + 0 + 0 - 0 6/30: Purchased own shares. 0 + 0 0 = 0 + 0 + 0 - 0 9/25: Sold treasury stock shares. 0 + 0 0 = 0 0 + 0 + 0. 0 + + Revenues. Expenses = Net Income 0 - 0 = 0 0 - 0 = 0 0 = 0 0 0 = 0 0 0 0 = b. Prepare the journal entries for these transactions. General Journal Description . Debit Credit 2/20 0 0 Common stock 0 0 0 0 2/21 0 0 Preferred stock 0 0 0 0 0 6/30 0 0 0 0 b. Prepare the journal entries for these transactions. General Journal Description Debit Credit 2/20 0 Common stock 0 0 2/21 0 Preferred stock 0 0 6/30 . 0 0 9/25 0 Treasury stock 0 0 0 0 0 0 0 0 0 0 C. Post the journal entries from b to the related T-accounts. Cash Common Stock Additional Paid in Capital 0 0 0 0 0 0 0 0 0 Retained Earnings 0 Preferred Stock Treasury Stock 0 0 Check