Identifying and Analyzing Financial Statement Effects and Stock Transactions

The stockholders' equity section of Medina Company at December 31, 2016,follows.

8% preferredstock,$25 par value,50,000 shares authorized;

8,400 shares issued and outstanding......................$210,000

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-common stock...............300,000

Retained Earnings......................................................370,000

During 2017, the following transactions occurred.

Jan 10 Issued 28,000 shares of common stock for $18 cash per share

Jan23 Repurchased 8,000 shares of common stock at $20 cash per share

Mar14 Sold one-half of the treasury shares acquired January 23 for $22 cash per share.

July 15 Issued 2,600 shares of preferred stock for $ 128,000 cash

Nov 15 Sold 1,000 of the treasury shares acquired January 23 for $26 cash per share

Required

a) Use the financial statement effects template to indicate the effects from each of these transactions.

b) Prepare the December 31,2017, stockholders' equity section of the balance sheet assuming the company reports 2017 net income of $121,000.