Newly formed S&J Iron Corporation has 83,000 shares of $5 par common stock autho
ID: 2536681 • Letter: N
Question
Newly formed S&J Iron Corporation has 83,000 shares of $5 par common stock authorized. On March 1, 2016, S&J Iron issued 10,000 shares of the stock for $10 per share. On May 2 the company issued an additional 21,500 shares for $21 per share. S&J Iron was not affected by other events during 2016.
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.
Determine the amount S&J Iron would report for common stock on the December 31, 2016, balance sheet.
Determine the amount S&J Iron would report for paid-in capital in excess of par.
What amount of total assets would S&J Iron report on the December 31, 2016, balance sheet?
Prepare journal entries to record the March 1 and May 2 transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field)
Newly formed S&J Iron Corporation has 83,000 shares of $5 par common stock authorized. On March 1, 2016, S&J Iron issued 10,000 shares of the stock for $10 per share. On May 2 the company issued an additional 21,500 shares for $21 per share. S&J Iron was not affected by other events during 2016.
Explanation / Answer
a)
B)COmmon stock : 157500
c)paid in capital:394000
d)otal amount of capital contributed by the owners = 157500+394000=551500
e)Total asset = 551500
f)
Event Asset = Liabilities + stockholders equity Cash flow cash common stock paid in capitall march1 10000*10=100000 10000*5=50000 50000 FA may2 21500*21=451500 21500*5= 107500 344000 FA Total 551500 157500 394000