Newly formed S&J Iron Corporation has 188,000 shares of $3 par common stock authorized. On March 1, Year 1, S&J Iron issued 10,000 shares of the stock for $9 per share. On May 2, the company issued an additional 16,500 shares for $20 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 (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
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Newly formed S&J Iron Corporation has 188,000 shares of $3 par common stock authorized. On March 1, Year 1, S&J Iron issued
10,000 shares of the stock for $9 per share. On May 2, the company issued an additional 16,500 shares for $20 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 tabs below.
Reg A
Reg B to E
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 finai
activity (FA). If an element was not affected by the event, leave the cell blank.
S&J IRON CORPORATION
Horizontal Statements Model
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Revenue
Expense
Net Income
Cash Flow
Common
PIC in
Event
Cash
Stock
Excess
March 1
May 2
+
Transcribed Image Text:Newly formed S&J Iron Corporation has 188,000 shares of $3 par common stock authorized. On March 1, Year 1, S&J Iron issued 10,000 shares of the stock for $9 per share. On May 2, the company issued an additional 16,500 shares for $20 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 tabs below. Reg A Reg B to E 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 finai activity (FA). If an element was not affected by the event, leave the cell blank. S&J IRON CORPORATION Horizontal Statements Model Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Revenue Expense Net Income Cash Flow Common PIC in Event Cash Stock Excess March 1 May 2 +
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Any amount paid in excess of the par value of the common stock goes to Paid-in capital in excess of par.

 

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