The stockholders equity of Verrecchia Company at December 31, 2013, follows

Common stock, $5 par value, 350,000 shares authorized; 250,000 shares issued and outstanding	$1,250,000
paid in capital in excess of par value	600,000
Retained Earnings	346,00

During 2014, the following transactions occurred:

Jan. 5 Issued 10,000 shares of common stock for $12 cash per share.

Jan. 18 Repurchased 4,000 shares of common stock at $15 cash per share.

Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $18 cash per share.

July 17 Sold 500 shares of treasury stock for $13 cash per share.

Oct. 1 Issued 5,000 shares of 8%, $25 par value preferred stock for $35 cash per share. This

is the first issuance of preferred shares from the 50,000 authorized preferred shares.

Required

a. Use the financial statement effects template to indicate the effects of each transaction.

b. Prepare the December 31, 2014, stockholders equity section of the balance sheet assuming that the

company reports net income of $65,800 for the year.