Tom Yuppy, a wealthy investor, paid $52,000 for 1,300 shares of $10 par common stock issued to him by Leuig Corp. A month later,Leuig Corp. issued an additional 2,600 shares of stock to Yuppy for $40 per share.RequiredShow the effect of the two stock issues on Leuig's books in a horizontal statements model. In the Cash Flow column, indicate whetherthe item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leavethe cell blank.Event1 - Common stock2- Issue of additional sharesAssetsCash ++Balance SheetLandLEUIG CORP.Horizontal Statements Model=Stockholders' EquityPIC inExcessCommonStockRevenueIncome StatementExpense = Net IncomeStatement of CashFlow

The issue of the shares means an activity in which the company raises capital by selling the smaller…

Answered: Tom Yuppy, a wealthy investor, paid…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Each of the following independent situations represents amounts shown on the four basic financial statements. 1. Revenues-$23,200, Expenses-$16100 Net income- 2 Increase in stockholders equity-$12000, Issuance of common stock-$11,000 Net income-$10,300: Dividends 3 Asses-$22,000, Stockholders equity-$15,000, Labines- 4 Total change in cash-$22.200; Net operating cash flows-$30,200, Net investing cash flows-($13.200): Net financing cash flows Required: in the formulas and missing blanks using your knowledge of amounts that appear on the financial statements. 13200
Upon review of Take a Hike's Statement of Cash Flows, the following was noted: Cash Flows from Operating Activities ($4,000) Cash Flows from Investing Activities ($14,000) Cash Flows from Financing Activities $19,000 From this information, the most likely explanation is that Take a Hike is O A. using cash from operations to purchase long-term assets and pay dividends. B. using cash from operations and issuing common stock to purchase long-term assets. C. issuing stock to fund operations and purchase long-term assets. D. assuming long term-debt and selling long-term assets to fund operations. E. using cash from operations and selling long-term assets to pay back long-term debt.
Using the data provided, produce the statemtn of stockholders equity On December 1, 2019, SoccerBox Inc. started operations. The following transactions occurred during December 2019. NOTE: There are no beginning balances-this is a new company. Dec 1 Randol Espy invested $80,000 cash in the company for common stock. 2 SoccerBox purchased soccer equipment for $20,000 cash. 2 SoccerBox rented an old warehouse for $30,000 cash for the first year's (December 2019-November 2020) rent. 3 SoccerBox purchased $500 of office supplies with cash. 10 SoccerBox paid $12,000 cash for an annual insurance policy. 14 SoccerBox paid $4,000 cash for the first payroll earned by its employees. 24 SoccerBox received $85,000 cash from soccer fees paid by parents for a private youth soccer lesson. 28 SoccerBox paid $4,000 cash for 2 weeks' salaries earned by its employees. 29 SoccerBox paid $200 cash for minor repairs to its soccer equipment. 30 SoccerBox paid $150…
On January 1, 2021, Red Flash Photography had the following balances: Cash, $26,000; Supplies, $9,400; Land, $74,000; Deferred Revenue, $6,400; Common Stock $64,000; and Retained Earnings, $39,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $34,000. 2. Мay 3. August 4. Оctober 5. November 17 Purchase supplies on account, $36,000. 6. December 30 Pay dividends, $3,400. 20 Provide services to customers for cash, $49,000, and on account, $44,000. 31 Pay salaries to employees for work in 2021, $37,000. 1 Purchase rental space for one year, $26,000. The following information is available on December 31, 2021: 1. Employees are owed an additional $5,400 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $6,400 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed.
[The following information applies to the questions displayed below.] Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Baird received $53,100 cash from revenue and incurred costs that required $38,100 of cash payments. Problem 10-26A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scenario: c. Baird is a manufacturing company. The $38,100 was paid to purchase the following items: (1) Paid $3,900 cash to purchase materials that were used to make products during the year. (2) Paid $1,300 cash for wages of factory workers who made products during the year. (3) Paid $18,600 cash for salaries of sales and administrative employees. (4) Paid $14,300 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $2,300 salvage value. The company uses straight-line depreciation. (5) During Year…
As of December 31, Year 2, Moss Company had total cash of $151,000, notes payable of $85,100, and common stock of $51,900. During Year 3, Moss earned $31,000 of cash revenue, paid $17,500 for cash expenses, and paid a $2,500 cash dividend to the stockholders. a. Determine the amount of retained earnings as of December 31, Year 2.
On January 1, 2021, Red Flash Photography had the following balances: Cash, $25,000; Supplies, $9,300; Land, $73,000; Deferred Revenue, $6,300; Common Stock $63,000; and Retained Earnings, $38,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $33,000. 2. May 20 Provide services to customers for cash, $48,000, and on account, $43,000. 3. August 31 Pay salaries to employees for work in 2021, $36,000. 4. October 1 Purchase rental space for one year, $25,000. 5. November 17 Purchase supplies on account, $35,000. 6. December 30 Pay dividends, $3,300. The following information is available on December 31, 2021: Employees are owed an additional $5,300 in salaries. Three months of the rental space has expired. Supplies of $6,300 remain on hand. All of the services associated with the beginning deferred revenue have been performed. part 1.please do the journal entry…
Ff.53.
On January 1, 2021, Red Flash Photography had the following balances: Cash, $26,000; Supplies, $9,400; Land, $74,000; Deferred Revenue, $6,400; Common Stock $64,000; and Retained Earnings, $39,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $34,000. 2. Мay 3. August 4. Оctober 5. November 17 Purchase supplies on account, $36,000. 6. December 30 Pay dividends, $3,400. 20 Provide services to customers for cash, $49,000, and on account, $44,000. 31 Pay salaries to employees for work in 2021, $37,000. 1 Purchase rental space for one year, $26,000. The following information is available on December 31, 2021: 1. Employees are owed an additional $5,400 in salaries. 2. Three months of the rental space has expired. 3. Supplies of $6,400 remain on hand. 4. All of the services associated with the beginning deferred revenue have been performed.
. Each of the following independent situations represents amounts shown on the four basic financial statements. Fill in the formulas and missing blanks using your knowledge of amounts that appear on the financial statements. Revenues = $27,000: Expenses = $18,000: Net income = _____. Increase in stockholders' equity = $17,000: issuance of common stock = $11,000: Net income = $12,000: Dividends = _____. Assets = $24,000: Stockholders' equity = $15,000: Liabilities = _____. Total change in cash = $26,000: Net operating cash flows = $34,000: Net investing cash flows-($17,000): Net financing cash flows = _______.
Zarooda Inc. has the following balances on its balance sheet: total assets of $50,000 (including cash of $6,000), total liabilities of $42,000, common stock of $5,000 and retained earnings of $3,000. What is the maximum amount of cash dividends that the company can pay? a. $50,000 b. $6,000 c. $3,000 d. $8,000
Indicate how to present and analyze liabilities and contingencies.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS