Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tom yuppy, a wealthy investor, paid $20,000 for 1,

Tom Yuppy, a wealthy investor, paid $20,000 for 1,000 shares of $10 par common stock...

50.1K

Verified Solution

Question

Accounting

Tom Yuppy, a wealthy investor, paid $20,000 for 1,000 shares of $10 par common stock issued to him by Leuig Corporation. A month later, Leuig Corporation issued an additional 2,000 shares of stock to Yuppy for $25 per share.
Required
Show the effect of the two stock issues on Leuig's books in a horizontal statements model. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank.
\table[[Event,\table[[LEUIG CORPORATION],[Horizontal Statements Model]],\table[[Statement of Cash],[Flows]]],[Balance Sheet,Income Statement],[Assets,=,Stockholders' Equity,Revenue,-,Expenses,=,Net Income],[Cash,+,Land,=,\table[[Common],[Stock]],+,\table[[Paid-in],[Capital in],[Excess]]],[1- Common stock,,+,,=,,+,,,-,,=,,],[2- Issue of additional shares,,+,,=,,+,,,-,,=,,]]
image

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A tank contains 100 gal of water. Brine enters the tank at the rate of 3 gal/min....

Basic Math
Q

2.) Discuss in detail why masks are relatively ineffective as a means of preventing infection by...

Biology
Q

If an undamped spring-mass system with a mass that weighs 6 lb and a spring constant...

Advance Math
Q

Self-service online is a major development in CRM systems allowing companies to reduce costs dramatically whilst, in...

General Management
Q

6 An Alternating Current circuit consists of a resistance and an ideal choke coil in...

Physics
Q

A bicycle is traveling at 12 miles per hour. How many feet will it cover...

Geometry
Q

The following information was available for Concord Corporation at December 31, 2017: beginning inventory $95000;...

Accounting
Q

On the maturity date, the bondholder is paid the face amount of the...

Accounting
Q

Information related to Ayayai Co. is presented below.Information related to Ayayai Co. is presented below....

Accounting
Q

Restaurants de lege volume of business by credit and debit cards suppose Cryside Collection rest...

Accounting
Q

E1-1 (Characteristics of not-for-profit and governmental entities) The mayor of a large city approaches a...

Accounting
Q

Prepare the statement of cash flows for Altar Corporation using the indirect method for the...

Accounting