a. Record the transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (lIA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet. c. Determine the amount S&J Iron would report for paid-in capital in excess of par. d. What is the total amount of capital contributed by the owners? e. What amount of total assets would S&J Iron report on the December 31, Year 1, balance sheet?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Text for Educational Website:**

**S&J Iron Corporation Transaction Analysis**

Newly formed S&J Iron Corporation has 195,000 shares of $4 par common stock authorized. On March 1, Year 1, S&J Iron issued 11,000 shares of the stock for $10 per share. On May 2, the company issued an additional 21,000 shares for $21 per share. S&J Iron was not affected by other events during Year 1.

### Required Tasks:

a. **Record Transactions in a Horizontal Statements Model:**
   - In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA).
   - If an element was not affected by the event, leave the cell blank.

b. **Determine the Reported Amounts for S&J Iron:**
   - **Common Stock on December 31, Year 1 Balance Sheet.**
   - **Paid-in Capital in Excess of Par.**
   - **Total Capital Contributed by Owners.**
   - **Total Assets on December 31, Year 1 Balance Sheet.**

### Horizontal Statements Model:

|          | **S&J IRON CORPORATION**                                 |
|----------|----------------------------------------------------------|
|          | **Horizontal Statements Model**                          |
| **Event**| **Balance Sheet**                | **Income Statement**  |
|          | Assets = Liabilities + Stockholders' Equity | Revenue - Expense = Net Income | **Cash Flow** |
|          | **Cash** |  | + Common Stock + PIC in Excess | | = | | |
| **March 1** | = |  | + | + | | = | | |
| **May 2**   | = |  | + | + | | = | | |

**Instructions:**
- Enter your answers in the tabs below labeled "Req A" and "Req B to E".
- If an element was not affected by the event, leave the corresponding cell blank.

Feel free to proceed to the next set of requirements by selecting "Req B to E" to continue filling out the horizontal statement model. Each transaction is categorized to help you understand how various activities impact the overall financial statements of a corporation.
Transcribed Image Text:**Text for Educational Website:** **S&J Iron Corporation Transaction Analysis** Newly formed S&J Iron Corporation has 195,000 shares of $4 par common stock authorized. On March 1, Year 1, S&J Iron issued 11,000 shares of the stock for $10 per share. On May 2, the company issued an additional 21,000 shares for $21 per share. S&J Iron was not affected by other events during Year 1. ### Required Tasks: a. **Record Transactions in a Horizontal Statements Model:** - In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). - If an element was not affected by the event, leave the cell blank. b. **Determine the Reported Amounts for S&J Iron:** - **Common Stock on December 31, Year 1 Balance Sheet.** - **Paid-in Capital in Excess of Par.** - **Total Capital Contributed by Owners.** - **Total Assets on December 31, Year 1 Balance Sheet.** ### Horizontal Statements Model: | | **S&J IRON CORPORATION** | |----------|----------------------------------------------------------| | | **Horizontal Statements Model** | | **Event**| **Balance Sheet** | **Income Statement** | | | Assets = Liabilities + Stockholders' Equity | Revenue - Expense = Net Income | **Cash Flow** | | | **Cash** | | + Common Stock + PIC in Excess | | = | | | | **March 1** | = | | + | + | | = | | | | **May 2** | = | | + | + | | = | | | **Instructions:** - Enter your answers in the tabs below labeled "Req A" and "Req B to E". - If an element was not affected by the event, leave the corresponding cell blank. Feel free to proceed to the next set of requirements by selecting "Req B to E" to continue filling out the horizontal statement model. Each transaction is categorized to help you understand how various activities impact the overall financial statements of a corporation.
**S&J Iron Corporation: Share Issuance and Financial Reporting**

**Overview:**
S&J Iron Corporation has authorized 195,000 shares of $4 par common stock. Key events and their financial reporting implications for Year 1 are outlined below.

**Events:**
- **March 1, Year 1:** Issued 11,000 shares at $10 per share.
- **May 2:** Issued an additional 21,000 shares at $21 per share.
- No other events affected the company during Year 1.

**Requirements:**

a. **Transaction Recording:**
   - Record transactions in a horizontal statements model.
   - In the Cash Flow column, categorize each item as an Operating Activity (OA), Investing Activity (IA), or Financing Activity (FA).
   - Leave the cell blank if no event impacts it.

b. **Common Stock Reporting:**
   - Calculate the common stock amount for the December 31, Year 1, balance sheet.

c. **Paid-in Capital in Excess of Par:**
   - Determine the reported amount for this category.

d. **Total Capital Contributed:**
   - Calculate the total capital contributed by the owners.

e. **Total Assets:**
   - Report the total assets on the December 31, Year 1, balance sheet.

**Interactive Section:**
- Complete by entering your answers in the provided tabs:
  - **Req A:** Focuses on recording transactions.
  - **Req B to E:** Focuses on financial statement reporting requirements.

**Entry Fields:**
- **Common Stock**
- **Paid-in Capital in Excess of Par**
- **Total Paid-in Capital**
- **Total Assets**

**Navigation:**
- Use "< Prev" and "Next >" to view more pages or sections.
Transcribed Image Text:**S&J Iron Corporation: Share Issuance and Financial Reporting** **Overview:** S&J Iron Corporation has authorized 195,000 shares of $4 par common stock. Key events and their financial reporting implications for Year 1 are outlined below. **Events:** - **March 1, Year 1:** Issued 11,000 shares at $10 per share. - **May 2:** Issued an additional 21,000 shares at $21 per share. - No other events affected the company during Year 1. **Requirements:** a. **Transaction Recording:** - Record transactions in a horizontal statements model. - In the Cash Flow column, categorize each item as an Operating Activity (OA), Investing Activity (IA), or Financing Activity (FA). - Leave the cell blank if no event impacts it. b. **Common Stock Reporting:** - Calculate the common stock amount for the December 31, Year 1, balance sheet. c. **Paid-in Capital in Excess of Par:** - Determine the reported amount for this category. d. **Total Capital Contributed:** - Calculate the total capital contributed by the owners. e. **Total Assets:** - Report the total assets on the December 31, Year 1, balance sheet. **Interactive Section:** - Complete by entering your answers in the provided tabs: - **Req A:** Focuses on recording transactions. - **Req B to E:** Focuses on financial statement reporting requirements. **Entry Fields:** - **Common Stock** - **Paid-in Capital in Excess of Par** - **Total Paid-in Capital** - **Total Assets** **Navigation:** - Use "< Prev" and "Next >" to view more pages or sections.
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