Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock auth
ID: 2588353 • Letter: N
Question
Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On March 1, 2016, S&J Iron issued 6,000 shares of the stock for $16 per share. On May 2 the company issued an additional 10,000 shares for $18 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.
If you could help me with May 2nd, the cash, PIC in excess, and cash flow it'd be greatly appreciated! I have all other ones correct except for those.
Newly formed S&J Iron Corporation has 50,000 shares of $10 par common stock authorized. On March 1, 2016, S&J Iron issued 6,000 shares of the stock for $16 per share. On May 2 the company issued an additional 10,000 shares for $18 per share. S&J Iron was not affected by other events during 2016.
Explanation / Answer
Balance Sheet Income Statement Event Assets = Liabilities + Stockholders’ Equity Revenue – Expense = Net Income Cash Flow Cash = + Common Stock + PIC in Excess – = Mar-01 96,000 = + 60,000 + 36,000 – = 96,000 FA May-02 180000 = + 1,00,000 + 80000 – = 180000 FA