Identifying and Analyzing Financial Statement Effects of Stock Transactions The stockholders\' equity of Verrecchia Company at December 31, 2013, follows: During 2014, the following transactions occurred: Jan. 5 Issued 10,000 shares of common stock for $12 cash per share. Jan. 18 Repurchased 4,000 shares of common stock at $15 cash per share. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $18 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 the 50,000 authorized shares. (a) Use the financial statement effects template to indicate the effects of each transaction. Balance Sheet Income Statement (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.Common stock, $5 par value, 350,000 shares authorized; 250,000 shares issued and outstanding $1,250,000Paid-in capital in excess of par value600,000Retained earnings346,000 Solution Answer:Balance SheetTransactionCash Asset+Noncash Assets=Liabilities+Contributed Capital+Earned CapitalJan. 5120000120000Jan. 18-60000-60000Mar. 121800018000July. 1765006500Oct. 1175000175000.