Newly formed S&J Iron Corporation has 192,000 shares of $5 par common stock authorized. On March 1, 2018, S&J Iron issued 11,500 shares of the stock for $13 per share. On May 2, the company issued an additional 23,000 shares for $19 per share. S&J Iron was not affected by other events during 2018. Required:Record the transactions in a horizontal statement 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.Determine the amount S&J Iron would report for common stock on the December 31, 2018, balance sheet.Determine the amount S&J Iron would report for paid-in capital in excess of par.What is the total amount of capital contributed by the owners?What amount of total assets would S&J Iron report on the December 31, 2018, balance sheet?

STATEMENT OF CASH FLOWS Date AMOUNT ($) 1-Mar-18 149,500 FA…

Answered: Newly formed S&J Iron Corporation has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Newly formed S&J Iron Corporation has 192,000 shares of $5 par common stock authorized. On March 1, 2018, S&J Iron issued 11,500 shares of the stock for $13 per share. On May 2, the company issued an additional 23,000 shares for $19 per share. S&J Iron was not affected by other events during 2018.

Required:

Record the transactions in a horizontal statement 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.
Determine the amount S&J Iron would report for common stock on the December 31, 2018, balance sheet.
Determine the amount S&J Iron would report for paid-in capital in excess of par.
What is the total amount of capital contributed by the owners?
What amount of total assets would S&J Iron report on the December 31, 2018, balance sheet?

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