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The stockholders’ equity section of Nielsen Corporation’s December 31, 2011, balance sheet is as follows:Stockholders’ EquityContributed capital:

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Preferred stock (10%, $50 par, 10,000 shares authorized,1,000 shares issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000Common stock ($15 par, 100,000 shares authorized,5,000 shares issued and outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000Paid-in capital in excess of par, preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000Paid-in capital in excess of par, common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000Total contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $152,000Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,000Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $254,000During 2012, Nielsen Corporation had the following transactions affecting stockholders’ equity:Jan. 20 Paid a cash dividend of $2 per share on common stock. The dividend was declared on December 15, 2011.Aug. 15 Reacquired 1,000 shares of common stock at $20 per share.Sept. 30 Reissued 500 shares of treasury stock at $21 per share.Oct. 15 Declared and paid cash dividends of $3 per share on the common stock.Nov. 1 Reissued 200 shares of treasury stock at $18 per share.Dec. 15 Declared and paid the 10% preferred cash dividend.31 Closed net income of $40,000 to Retained Earnings. (Revenues were $260,000; expenses were $220,000.) Also closed the dividends accounts to Retained Earnings.Required:1. Journalize the transactions.2. Prepare the stockholders’ equity section of Nielsen December 31, 2012, balance sheet.3. Interpretive Question: What is the effect on earnings per share when a company purchases treasury stock? Get Accounting Help Today