**Newly formed S&J Iron Corporation** has 143,000 shares of $7 par common stock authorized. On March 1, Year 1, S&J Iron issued 12,090 shares of the stock for $10 per share. On May 2, the company issued an additional 23,500 shares for $22 per share. S&J Iron was not affected by other events during Year 1.**Required**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 (IA), 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?**Complete this question by entering your answers in the table below.****Table:**- b: Common stock- c: Paid-in capital in excess of par- d: Total paid-in capital- e: Total assets **Educational Content: Understanding Financial Transactions through Horizontal Statements****Scenario:**The newly formed S&J Iron Corporation has 143,000 shares of $7 par common stock authorized. On March 1, Year 1, S&J Iron issued 12,000 shares of the stock for $10 per share. On May 2, the company issued an additional 23,500 shares for $22 per share. S&J Iron was not affected by other events during Year 1.**Required Tasks:**a. **Record the Transactions:** - Use a horizontal statements model to record transactions. - Indicate the type of cash flow: operating activity (OA), investing activity (IA), or financing activity (FA). - If an element was not affected by the event, leave it blank.b. **Determine Common Stock on December 31, Year 1.**c. **Determine Paid-in Capital in Excess of Par.**d. **Calculate Total Capital Contributed by Owners.**e. **Determine Total Assets on the December 31, Year 1 Balance Sheet.****Instructions:** Enter your answers in the provided tabs for specific requirements. There are two tabs: - Req A- Req B to E**Graphical Explanation: Horizontal Statements Model**The horizontal statements model consists of several segments:1. **Balance Sheet:** - **Assets:** Includes cash changes from transactions. - **Liabilities:** Not impacted in this scenario. - **Stockholders' Equity:** Includes common stock and paid-in capital excess.2. **Income Statement:** - **Revenue, Expense, Net Income:** Not directly impacted by stock issues.3. **Cash Flow:** - Reflects transactions through financing activities.**Transactions:**- **March 1 Event:** - Cash is increased due to stock issuance. - Common Stock reflects par value. - Paid-in Capital in Excess reflects the amount received over the par value. - Classified as financing activity.- **May 2 Event:** - Similar adjustments for increased cash, common stock, and paid-in capital in excess. - Classified as a financing activity.The model helps track how specific financial transactions alter the balance sheet and cash flow over time, providing a comprehensive view of corporate finance operations.

Double-entry bookkeeping, the method used to document and monitor financial transactions, is based on the accounting equation. It facilitates comprehension of how a business finances its resources (assets) through owner investments (owner's equity) or loans (liabilities). It's an essential idea in financial accounting since it offers a structure for financial analysis and reporting.The horizontal analysis model is prepared as follows:The horizontal analysis model can be analyzed as follows:b. The total amount of common stock to be reported on the balance sheet is $248,500.c. The total amount of paid-in capital in excess of par to be reported on the balance sheet is $388,500.d. The total capital contributed by owners is $637,000.e. Since no other transactions are stated, the amount of total assets to be reported is $637,000.