Chapter 11, Problem 8BE

a)

To determine

Record the transactions in a horizontal statements model and indicate whether the item is an operating activity (OA), investing activity (IA), or financial activity (FA) in the cash flow column. Use NA to indicate that an element was not affected by event.

b)

To determine

Ascertain the amount of common stock that Corporation I would report on the balance sheet as of December 31, Year 1.

c)

To determine

Ascertain the amount of paid-in-capital in excess of par that Corporation I would report on the balance sheet as of December 31, Year 1.

d)

To determine

Ascertain the total amount of capital contributed by the shareholders.

e)

To determine

Compute the total assets that would be reported on Corporation I’s balance sheet as on December 31, Year 1.

f)

To determine

Prepare the journal entries to record the March 01, and May 02 transactions.