Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On...

80.2K

Verified Solution

Question

Accounting

Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On March 1, 2016, S&J Iron issued 6,000 shares of the stock for $16 per share. On May 2 the company issued an additional 10,000 shares for $18 per share. S&J Iron was not affected by other events during 2016.

Required
a.

Record the transactions 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 was not affected by the event.

Balance Sheet Income Statement
Event Assets = Liabilities + Stockholders Equity Revenue Expense = Net Income Cash Flow
Cash = + Common Stock + PIC in Excess =
March 1 96,000 = + 60,000 + 36,000 = 96,000 FA
May 2 = + 100,000 + = FA

If you could help me with May 2nd, the cash, PIC in excess, and cash flow it'd be greatly appreciated! I have all other ones correct except for those.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students