The following information pertains to Rising Suns Corporation at January 1, Year 2: Common stock, $20 par, 50,000 shares authorized, 12,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings Rising Suns Corporation completed the following events during Year 2: 1. Issued 5,260 shares of $20 par common stock for $30 per share. 2. Repurchased 1,260 shares of its own common stock for $25 per share. 3. Resold 630 shares of treasury stock for $30 per share. Required: 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). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Beginning Assets Cash 482,500 = Common Stock 252,000 + Balance Sheet Stockholders' Equity Paid-in Capital from Treasury Stock $ 252,000 126,000 $ 104,500 Paid-in Capital in Excess-Common Stock 126,000 + Treasury Stock Retained Earnings 104,500 Revenue Income Statement Expenses = Net Income Statement of Cash Flows
The following information pertains to Rising Suns Corporation at January 1, Year 2: Common stock, $20 par, 50,000 shares authorized, 12,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings Rising Suns Corporation completed the following events during Year 2: 1. Issued 5,260 shares of $20 par common stock for $30 per share. 2. Repurchased 1,260 shares of its own common stock for $25 per share. 3. Resold 630 shares of treasury stock for $30 per share. Required: 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). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Beginning Assets Cash 482,500 = Common Stock 252,000 + Balance Sheet Stockholders' Equity Paid-in Capital from Treasury Stock $ 252,000 126,000 $ 104,500 Paid-in Capital in Excess-Common Stock 126,000 + Treasury Stock Retained Earnings 104,500 Revenue Income Statement Expenses = Net Income Statement of Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The following information pertains to Rising Suns Corporation at January 1, Year 2:
Common stock, $20 par, 50,000 shares authorized, 12,600 shares
issued and outstanding
Paid-in capital in excess of par, common stock
Retained earnings
Rising Suns Corporation completed the following events during Year 2:
1. Issued 5,260 shares of $20 par common stock for $30 per share.
2. Repurchased 1,260 shares of its own common stock for $25 per share.
3. Resold 630 shares of treasury stock for $30 per share.
Required:
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).
Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.
Event
Number
Assets
Cash
Beginning
1
2
3
Total
* NC = Net change in cash
=
482,500 =
=
=
=
Common
Stock
252,000+
+
+
+
+
Balance Sheet
Stockholders' Equity
Paid-in Capital
from Treasury
Stock
Paid-in Capital in
Excess-Common +
Stock
126,000 +
+
$ 252,000
126,000
$ 104,500
+
+
Treasury
Stock
Retained
Earnings
104,500
Revenue
Income Statement
Expenses - Net Income
=
=
=
Statement of
Cash Flows
NC
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