Transaction Analysis: Shareholders Equity Davidson Corp. has the following transactions. Use the balance sheet equation to analyze the financial statement effects of these transactions. Set up the fol- lowing columns: cash, patent, preferred stock, capital in excess of par, com- mon stock, and treasury stock. 1. Issued five million shares of $2.00 par value preferred stock at a price of $10.00. 2. Issued five million shares of no-par common stock at a price of $20.00. 3. Purchased 100,000 shares of its own common stock as treasury stock at a market price of $35.00. 4. Issued 200,000 shares of no-par common stock in exchange for patent rights. The stock has a market price of $40.00.