Tom Yuppy, a wealthy investor, paid $60,720 for 1,380 shares of $10 par common stock issued to him by Leuig Corp. A month later, Leuig Corp. issued an additional 2,760 shares of stock to Yuppy for $44 per share. Required Show the effect of the two stock issues on Leuig's books 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.

Tom Yuppy, a wealthy investor, paid $60,720 for 1,380 shares of $10 par common stock issued to him by Leuig Corp. A month later, Leuig Corp. issued an additional 2,760 shares of stock to Yuppy for $44 per share. Required Show the effect of the two stock issues on Leuig's books 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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