The stockholders' equity of Gaulin Company at the start of the current year follows: Common stock, $ 5 par value, 350,000 shares authorized; 120,000 shares issued and outstanding $ 600,000 Paid-in capital in excess of par value 600,000 Retained earnings 346,000 During the current year, the following transactions occurred: Jan. 5 Issued 10,000 shares of common stock for $12 cash per share. Jan. 18 Purchased 4,000 shares of common stock for the treasury at $14 cash per share. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $17 cash per share. July 17 Sold 500 shares of the remaining treasury stock for $13 cash per share. Oct. 1 Issued 5,000 shares of 8%, $22 par value preferred stock for $32 cash per share. This is the first issuance of preferred shares from the 50,000 authorized shares. (a) Use the financial statement effects template to indicate the effects of each transaction. Use negative signs with answers, when appropriate.
Balance Sheet
TransactionCash Asset+Noncash Assets=Liabilities+Contributed Capital+Earned Capital
Jan. 5Answer Answer Answer Answer AnswerJan. 18Answer Answer Answer Answer AnswerMar. 12Answer Answer Answer Answer AnswerJuly. 17Answer Answer Answer Answer AnswerOct. 1Answer Answer Answer Answer AnswerIncome StatementRevenue-Expenses=Net IncomeAnswer Answer AnswerAnswer Answer AnswerAnswer Answer AnswerAnswer Answer AnswerAnswer Answer Answer(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. Stockholders' EquityPaid-in capital 8% Preferred stock, $25 par value, 50,000 shares authorized, 5,000 shares issued and outstanding$AnswerCommon stock, $5 par value, 350,000 shares authorized; 260,000 shares issuedAnswer$AnswerAdditional paid-in capital Paid-in capital in excess of par value-preferred stockAnswerPaid-in capital in excess of par value-common stockAnswerPaid-in capital from treasury stockAnswerAnswerTotal paid-in capital AnswerRetained earnings AnswerAnswerLess: Treasury stock (2,500 shares) at cost AnswerTotal Stockholders' Equity $ Answer