Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On March 1, Year 1, S&J Iron issued 6,000 shares of the stock for $16 per share. On May 2, the company issued an additional 10,000 shares for $18 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). Use NA to indicate that an element was not affected by the event. Balance Sheet Income Statement Event Assets Cash Liabilities + Stockholders' Equity Revenue - Expense = Net Income Cash Flow Common PIC in + Stock Excess March 1 May 2 96,000 = 이+ 60,000 + 36,000 0 01 = 0 96,000 FA 180,000 = 0+ 100,000 80,000 0- 0 = 이 180,000 FA
Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On March 1, Year 1, S&J Iron issued 6,000 shares of the stock for $16 per share. On May 2, the company issued an additional 10,000 shares for $18 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). Use NA to indicate that an element was not affected by the event. Balance Sheet Income Statement Event Assets Cash Liabilities + Stockholders' Equity Revenue - Expense = Net Income Cash Flow Common PIC in + Stock Excess March 1 May 2 96,000 = 이+ 60,000 + 36,000 0 01 = 0 96,000 FA 180,000 = 0+ 100,000 80,000 0- 0 = 이 180,000 FA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ces
Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On March 1, Year 1, S&J Iron issued 6,000
shares of the stock for $16 per share. On May 2, the company issued an additional 10,000 shares for $18 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). Use NA to indicate that an element was not affected by the event.
Balance Sheet
Income Statement
Assets
Liabilities
+
Stockholders' Equity
Revenue
Expense
= Net Income
Cash Flow
Event
Common
Cash
+
Stock
PIC in
Excess
March 1
96,000 =
0+
60,000+
36,000
0
0 =
°
96,000 FA
May 2
180,000 =
0+
100,000+
80,000
0-
0 =
0
180,000 FA
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