Newly formed S&J; Iron Corporation has 198,000 shares of $5 par common stock aut

Question

Newly formed S&J; Iron Corporation has 198,000 shares of $5 par common stock authorized. On March 1 2016, S&J; Iron issued 11,000 shares of the stock for $11 per share. On May 2 the company issued an additional 22,500 shares for $21 per share. S.&J; Iron was not affected by other events during 2016. Required a. Record the transactions in a horizontal statements model. In the Cash Flow column, indicate whether the Rem is an operating activity (OA), investing activity (UA), or financing activity (FA). Use NA to ind cate that an element was not affected by the event Balance Sheet Income Statement Cash Flow Liabilities Stockholders' Equity PIC in Revenue Expense = Net Income Assets Cash Common Event March 1 May 2 b. Determine the amount S&J; Iron would report for common stock on the December 31, 2016, balance sheet c. Determine the amount S8J Iron would report for paid-in capital in excess of par

Explanation / Answer

Assets laibilities Stockholders Equity evenue expense net income Cash flow commn PIC in Event cash stock excess 1-Mar 121000 55000 66000 FA 121,000 2-Mar 472500 112500 360000 FA 472,500 b) common stock 167500 c) paid in capital in excess of par 426,000 d Capital contributed by owners 593,500 e) total assts 593,500 f) Date General Journal Debit Credit 1-Mar Cash 121,000 common stock 55,000 paid in capital in excess of par 66,000 2-Mar Cash 472,500 common stock 112,500 paid in capital in excess of par 360,000

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