The stockholders' equity of Verrecchia Company at December 31, 2018, follows. Common stock, $5 par value, 350,000 shares authorized;

150,000 shares issued and outstanding ............................................................  $750,000

Paid-in capital in excess of par value ................................................................... 600,000

Retained earnings ...................................................................................................  346,000

During 2019, 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%, $25 par value preferred stock for $35 cash per share. This is the first issuance of preferred shares from 50,000 authorized shares.

REQUIRED:

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

b. Prepare the journal entries for these transactions.

c. Post the journal entries from b to the related T-accounts.

d. Prepare the December 31, 2019, stockholders' equity section of the balance sheet assuming that the company reports net income of $72,500 for the year.

e. How will each transaction affect the calculation of basic EPS?