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Newly formed S&J Iron Corporation has 125,000 shares of $5 par common stock authorized. On March 1, Year 1, S&J Iron issued 9,000 shares of the stock for $11 per share. On May 2, the company issued an additional 20,500 shares for $22 per share. S&J Iron was not affected by other events during Year 1. Required a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). 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? Complete this question by entering your answers in the tabs below. Req A Req B to E Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, recor amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or fina activities (FA). S&J IRON CORPORATION Horizontal Statements Model Balance Sheet Income Statement Event March 1 Assets Stockholders' Equity Liabilities + Cash Common Stock PIC in Revenue Expense =Net Income Statement of Cash Flows Excess 99,000 = + 45,000+ 54,000 May 2 451,000= + 123,000+ 328,000 99,000 FA 451,000 FA

Newly formed S&J Iron Corporation has 125,000 shares of $5 par common stock authorized. On March 1, Year 1, S&J Iron issued 9,000 shares of the stock for $11 per share. On May 2, the company issued an additional 20,500 shares for $22 per share. S&J Iron was not affected by other events during Year 1. Required a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). 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? Complete this question by entering your answers in the tabs below. Req A Req B to E Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, recor amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or fina activities (FA). S&J IRON CORPORATION Horizontal Statements Model Balance Sheet Income Statement Event March 1 Assets Stockholders' Equity Liabilities + Cash Common Stock PIC in Revenue Expense =Net Income Statement of Cash Flows Excess 99,000 = + 45,000+ 54,000 May 2 451,000= + 123,000+ 328,000 99,000 FA 451,000 FA

FINANCIAL ACCOUNTING
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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Newly formed S&J Iron Corporation has 125,000 shares of $5 par common stock authorized. On March 1, Year 1, S&J Iron issued 9,000 shares of the stock for $11 per share. On May 2, the company issued an additional 20,500 shares for $22 per share. S&J Iron was not affected by other events during Year 1. Required a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). 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? Complete this question by entering your answers in the tabs below. Req A Req B to E Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, recor amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or fina activities (FA). S&J IRON CORPORATION Horizontal Statements Model Income Statement Balance Sheet Assets = Liabilities + Event Cash Common Stock + Stockholders' Equity PIC in Excess Revenue Expense = Net Income Statement of Cash Flows March 1 May 2 99,000 = + 45,000+ 54,000 451,000 = + 123,000+ 328,000 99,000 FA 451,000 FA < Req A Req B to E>
Transcribed Image Text:Newly formed S&J Iron Corporation has 125,000 shares of $5 par common stock authorized. On March 1, Year 1, S&J Iron issued 9,000 shares of the stock for $11 per share. On May 2, the company issued an additional 20,500 shares for $22 per share. S&J Iron was not affected by other events during Year 1. Required a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). 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? Complete this question by entering your answers in the tabs below. Req A Req B to E Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, recor amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or fina activities (FA). S&J IRON CORPORATION Horizontal Statements Model Income Statement Balance Sheet Assets = Liabilities + Event Cash Common Stock + Stockholders' Equity PIC in Excess Revenue Expense = Net Income Statement of Cash Flows March 1 May 2 99,000 = + 45,000+ 54,000 451,000 = + 123,000+ 328,000 99,000 FA 451,000 FA < Req A Req B to E>
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