Chapter 11, Problem 27AP

a)

To determine

Record the given events 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). Use NA to indicate that an element is not affected by the event.

b)

To determine

Record the year 1 transactions in general journal form and post them to T-accounts.

c)

To determine

Prepare the stockholders’ equity section of the balance sheet at the end of Year 1.

d)

To determine

Ascertain the market value of the common stock theoretically after the stock split.