Stock Issuance The following transactions are for Grifton Industries in 2017: Required: 1. Identify and analyze the effect of each transaction. a. On March 1, the corporation was organized and received authorization to issue 5,000 shares of 8%, $100 par value preferred stock and 2,000,000 shares of $10 par value common stock. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Ex Revenues No Entry No Entry No Entry No Entry No Entry Feedback Check My Work Identify and analyze the transaction by using the following steps: 1. Determine activity - operating, investing or financing. 2. Determine accounts affected and the amount of increases/decreases. 3. Determine the financial statements affected - balance sheet, income statement. The accounting equation must balance for each transaction. A business develops articles of incorporation and applies to the proper state authorities for a corporate charter for incorporation. The maximum number of shares specified for issue is called authorized stock. Determine if assets, liabilities, or equity changed. If yes, an entry needs to be made. If not, no entry is needed.