Mercury Corporation issued 6,000 shares of no-par common stock for $45 per share

Question

Mercury Corporation issued 6,000 shares of no-par common stock for $45 per share. Mercury also issued 3,000 shares of $50 par, 5 percent noncumulative preferred stock at $52 per share. Required Record these 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 was not affected by the event. MERCURY CORPORATION Horizontal Statements Model Balance Sheet Income Statement Stockholders' Equity venueExpenseNet Income Statement of Cash Assets Flow CashPreferred Common Stock PIC in Excess Event 1 - Issue of CS 2-Issue of PS

Explanation / Answer

MERCURY CORPORATION Horizontal Statements Model Balance Sheet Income Statement Event Assets = Stockholders' Equity Revenue - Expense = Net Income Statement of Cash Flow Cash = Preferred Stock + Common Stock + PIC in Excess - = 1 - Issue of CS 270000 = + 270000 + - = 270000 FA 2 - Issue of PS 156000 = 150000 + + 6000 - = 156000 FA

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