The stockholders equity section of Gupta Company at December 31, 2014, follows.

8% preferred stock, $25 par value, 50,000 shares authorized;
6,800 shares issued and outstanding	$170,000
Common stock, $10 par value, 200,000 shares authorized;
50,000 shares issued and outstanding	500,000
Paid-in capital in excess of par value--preferred stock	68,000
Paid-in capital in excess of par value--common stock	200,000
Retained earnings	270,000

During 2015, the following transactions occurred:

Jan. 10	Issued 30,000 shares of common stock for $17 cash per share.
Jan. 23	Purchased 8,200 shares of common stock for the treasury at $19 cash per share.
Mar. 14	Sold one-half of the treasury shares acquired January 23 for $21 cash per share.
July 15	Issued 3,400 shares of preferred stock for $130,000 cash.
Nov. 15	Sold 1,200 of the treasury shares acquired January 23 for $24 cash per share.

Required

a. Using the financial statement effects template, illustrate the effects of each transaction.

Balance Sheet
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contrib. Capital	+	Earned Capital	-	Contra-Equity
1/10 Issued common stock	$Answer	+	$Answer	=	$Answer	+	$300,000	+	$Answer	-	$Answer
	Answer	+	Answer	=	Answer	+	Answer	+	Answer	-	Answer
1/23 Purchased treasury stock	Answer	+	Answer	=	Answer	+	Answer	+	Answer	-	Answer
3/14 Sold treasury stock	Answer	+	Answer	=	Answer	+	Answer	+	Answer	-	Answer
7/15 Issued preferred stock	Answer	+	Answer	=	Answer	+	85,000	+	Answer	-	Answer
	Answer	+	Answer	=	Answer	+	Answer	+	Answer	-	Answer
11/15 Sold treasury stock	Answer	+	Answer	=	Answer	+	Answer	+	Answer	-	Answer

Income Statement
	Revenue	-	Expense	=	Net Income
	$Answer	-	$Answer	=	$Answer
	Answer	-	Answer	=	Answer
	Answer	-	Answer	=	Answer
	Answer	-	Answer	=	Answer
	Answer	-	Answer	=	Answer
	Answer	-	Answer	=	Answer
	Answer	-	Answer	=	Answer

b. Prepare the journal entries for these transactions.

General Journal
Date	Description	Debit	Credit
1/10	Answer	Answer	Answer
	Common Stock	Answer	Answer
	Answer	Answer	Answer
1/23	Answer	Answer	Answer
	Answer	Answer	Answer
3/14	Answer	Answer	Answer
	Treasury stock	Answer	Answer
	Answer	Answer	Answer
7/15	Answer	Answer	Answer
	Preferred stock	Answer	Answer
	Answer	Answer	Answer
11/15	Answer	Answer	Answer
	Treasury stock	Answer	Answer
	Answer	Answer	Answer

c. Indicate the impact of each transaction on the calculation of basic EPS.

1/10	Increase/Decrease
1/23	Increase/Decrease
3/14	Increase/Decrease
7/15	Increase/Decrease
11/15	Increase/Decrease

d. Prepare the December 31, 2015, stockholders' equity section of the balance sheet assuming the company reports 2015 net income of $59,000. Enter number of shares issued for each stock type. Hint: Do not use negative signs with answers.

Stockholders' Equity
Paid-in capital:
8% Preferred stock, $25 par value, 50,000 shares authorized;
Answer shares issued and outstanding	$Answer
Common stock, $10 par value, 200,000 shares authorized;
Answer shares issued	Answer	$Answer
Additional paid-in capital
Paid-in capital in excess of par value--Preferred stock	Answer
Paid-in capital in excess of par value--Common stock	Answer
Paid-in capital from Treasury stock	Answer	Answer
Total paid-in capital		Answer
Retained earnings		Answer
		Answer
Less: Treasury stock at cost Answer shares		Answer
Total stockholders' equity		$Answer