The following information pertains to Rising Suns Corporation at January 1, Year 2 Common stock, $20 par, 50,000 shares authorized, 12,400 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $ 248,000 124,000 $ 103,000 Rising Suns completed the following events during Year 2: 1. Issued 5.240 shares of $20 par common stock for $30 per share. 2. Repurchased 1,240 shares of its own common stock for $25 per share. 3. Resold 620 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. Legye cells blank if no innut is needed
The following information pertains to Rising Suns Corporation at January 1, Year 2 Common stock, $20 par, 50,000 shares authorized, 12,400 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings $ 248,000 124,000 $ 103,000 Rising Suns completed the following events during Year 2: 1. Issued 5.240 shares of $20 par common stock for $30 per share. 2. Repurchased 1,240 shares of its own common stock for $25 per share. 3. Resold 620 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. Legye cells blank if no innut is needed
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information pertains to Rising Suns Corporation at January 1, Year 2
Common stock, $20 par, 50,000 shares authorized, 12,400 shares
issued and outstanding
Paid-in capital in excess of par, common stock
Retained earnings
Rising Suns completed the following events during Year 2:
1. Issued 5,240 shares of $20 par common stock for $30 per share.
2. Repurchased 1,240 shares of its own common stock for $25 per share.
3. Resold 620 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 W
2
Cash
Beginning 475.000 =
1
=
3
Total
NC Net change in cash
=
Common
Stock
248,000 +
+
Balance Sheet
Paid-in Capital in
+ Excess-Common
Stock
+
+
+
Stockholders' Equity
Paid-in Capital
from Treasury
Stock
$ 248,000
124,000
$ 103,000
124.000 +
Treasury
Stock
Retained
Earnings
103.000
Revenue
Income Statement
- Expenses -
1-
=
=
Net Income
Statement of
Cash Flows
NC
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