Newly formed S&J Iron Corporation has 95,000 shares of $5 par common stock authorized. On March 1, Year 1, S&J Iron issued 8,000 shares of the stock for $12 per share. On May 2, the company issued an additional 19,500 shares for $21 per share. S&J Iron was not affected by other events during Year 1. Required a. 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). b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet. c. Determine the amount S&J Iron would report for paid-in capital in excess of par. d. What is the total amount of capital contributed by the owners? e. What amount of total assets would S&J Iron report on the December 31, Year 1, balance sheet? Complete this question by entering your answers in the tabs below. Req A Req B to E Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Mor amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing a activities (FA). S&J IRON CORPORATION Horizontal Statements Model Balance Sheet Income Statement Event Assets Cash Stockholders' Equity Liabilities + Common Stock PIC in Excess Revenue Expense Net Income Statement of Cash Flows March 1 + May 2 + Req A Req B to E >
Newly formed S&J Iron Corporation has 95,000 shares of $5 par common stock authorized. On March 1, Year 1, S&J Iron issued 8,000 shares of the stock for $12 per share. On May 2, the company issued an additional 19,500 shares for $21 per share. S&J Iron was not affected by other events during Year 1. Required a. 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). b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet. c. Determine the amount S&J Iron would report for paid-in capital in excess of par. d. What is the total amount of capital contributed by the owners? e. What amount of total assets would S&J Iron report on the December 31, Year 1, balance sheet? Complete this question by entering your answers in the tabs below. Req A Req B to E Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Mor amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing a activities (FA). S&J IRON CORPORATION Horizontal Statements Model Balance Sheet Income Statement Event Assets Cash Stockholders' Equity Liabilities + Common Stock PIC in Excess Revenue Expense Net Income Statement of Cash Flows March 1 + May 2 + Req A Req B to E >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:Newly formed S&J Iron Corporation has 95,000 shares of $5 par common stock authorized. On March 1, Year 1, S&J Iron issued 8,000
shares of the stock for $12 per share. On May 2, the company issued an additional 19,500 shares for $21 per share. S&J Iron was not
affected by other events during Year 1.
Required
a. 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).
b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet.
c. Determine the amount S&J Iron would report for paid-in capital in excess of par.
d. What is the total amount of capital contributed by the owners?
e. What amount of total assets would S&J Iron report on the December 31, Year 1, balance sheet?
Complete this question by entering your answers in the tabs below.
Req A
Req B to E
Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Mor
amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing a
activities (FA).
S&J IRON CORPORATION
Horizontal Statements Model
Balance Sheet
Income Statement
Event
Assets
Cash
Stockholders' Equity
Liabilities
+
Common
Stock
PIC in
Excess
Revenue
Expense
Net Income
Statement of Cash
Flows
March 1
+
May 2
+
Req A
Req B to E >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
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,
Accounting
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