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[The following information applies to the questions displayed below.] Concord Corp. completed the following transactions in...

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[The following information applies to the questions displayedbelow.] Concord Corp. completed the following transactions in 2014,the first year of operation: 1. Issued 32,000 shares of $20 parcommon stock for $30 per share. 2. Issued 4,900 shares of $54 par,8 percent, preferred stock at $56 per share. 3. Paid the annualcash dividend to preferred shareholders. 4. Issued a 5 percentstock dividend on the common stock. The market value at thedividend declaration date was $43 per share. 5. Later that year,issued a 2-for-1 split on the 33,600 shares of outstanding commonstock. 6. Earned $250,700 of cash revenues and paid $131,000 ofcash operating expenses.

Required a. Record each of these events in a horizontalstatements model like the following one. In the Cash Flow column,indicate whether the item is an operating activity (OA), aninvesting activity (IA), or a financing activity (FA) and netchange in cash (NC). Use NA to indicate that an element is notaffected by the event. (Enter any decreases to account balances andcash outflows with a minus sign.)

Please answer question in its entirety.

Answer & Explanation Solved by verified expert
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Solution;

Concord Corp.
Horizontal Statement Model
Event Balance Sheet Income Statement Statement of Cash Flows
Assets = Stockholder's Equity Revenue - Expense = Net Income
Cash = Common Stock + Paid in capital in excess of par - common stock + Preferred Stock + Paid in capital in excess of par - Preferred stock + Retained Earnings
1 $960,000.00 = $640,000.00 + $320,000.00 + $0.00 + $0.00 + $0.00 $0.00 - $0.00 = $0.00 $960,000.00 FA
2 $274,400.00 = $0.00 + $0.00 + $264,600.00 + $9,800.00 + $0.00 $0.00 - $0.00 = $0.00 $274,400.00 FA
3 -$21,168.00 = $0.00 + $0.00 + $0.00 + $0.00 + -$21,168.00 $0.00 - $0.00 = $0.00 -$21,168.00 FA
4 $0.00 = $32,000.00 + $36,800.00 + $0.00 + $0.00 + -$68,800.00 $0.00 - $0.00 = $0.00 $0.00 NA
5 $0.00 = $0.00 + $0.00 + $0.00 + $0.00 + $0.00 $0.00 - $0.00 = $0.00 $0.00 NA
6 $119,700.00 = $0.00 + $0.00 + $0.00 + $0.00 + $119,700.00 $250,700.00 - $131,000.00 = $119,700.00 $119,700.00 OA
Total $1,332,932.00 = $672,000.00 + $356,800.00 + $264,600.00 + $9,800.00 + $29,732.00 $250,700.00 - $131,000.00 = $119,700.00 $1,332,932.00 NC

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