Question

Reg A Reg B to E Record the transactions in a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), financing activity (FA). Not all cells require input.) S&J IRON CORPORATION Horizontal Statements Model Balance Sheet Income Statement Assets Statement of Cash Liabilities Revenue Stockholders' Equity Expense - Net Income Flows Event Cash Common PIC in Stock Excess March 1 May 2 + + + Reg Req B to E

Answer 1

S&J

Iron

CorpCorporation

Horizontal

Statement

Model

Balance

Sheet

Income

Statement

Event

Assets

=

Liabilities

+

Stockholders

Equity

Revenue

-

Expense

=

Net Income

Statement

of Cashflow

Cash

=

+

Common Stock

+

PIC in Excess

-

=

March 1

149,500

=

+

69,000

+

80,500

-

=

149,500

Financing Activity

May 02

525,000

=

+

150,000

+

375,000

-

=

525,000

Financing Activity

Total

674,500

=

+

219,000

+

455,500

-

=

Notes

March 01 Cash = 11,500 Shares * $ 13 per Share = $ 149,500

May 02 Cash = 25,000 Shares * $ 21 per Share = $ 525,000

March 01 Common Stock = 11,500 Shares * $ 6 per Share = $ 69,000

May 02 Common Stock = 25,000 Shares * $ 6 per Share = $ 150,000

March 01 Paid in Capital Excess of Par = 149,500 - 69,000 = $ 80,500

May 02 Paid in Capital in Excess of Par = 525,000 - 150,000 = $ 375,000

Requirement B

Common stock = 69,000 + 150,000

Common Stock = $ 219,000

Requirement C

Additional Paid in Capital in Excess of Par = 80,500 + 375,000

Additional Paid in Capital in Excess of Par = $ 455,500

Requirement D

Total Paid in Capital = Common Stock + Additional Paid in Capital in Excess of Par

Total Paid in Capital = 219,000 + 455,500

Total Paid in Capital = $ 674,500

Requirement 5

Total Assets = $ 674,500

Total Assets = Total Paid in Capital