Question

please help!!

Newly formed S&J Iron Corporation has 97,000 shares of $4 par common stock authortzedOn March 2018, S&J Iron issued 8.500 shares of the stock for $11 per share. On May 2, the company issued an additional 16,000 shares for $20 per share. S&J Iron was not affected by other events during 2018 Required: a. Record the transactions in a horizontal statements model in the Cash Flow column, indicate whether the item is an operating activity (OA). Investing activity (Alor financing activity (FA). If an element was not affected by the event, leave the cell blank b. Determine the amount S&J Iron would report for common stock on the December 31, 2018, balance sheet. c. Determine the amount S&J iron would report for pald-in capital in excess of par d. What is the total amount of capital contributed by the owners? e. What amount of total assets would S&J Iron report on the December 31, 2018, balance sheet? Complete this question by entering your answers in the tabs below. Reto E Record the transactions in a horizontal statements model. In the Cash Flow column indicate whether the tem is an operating activity (OA). Investing activity (TA), activity (FA). If an element was not affected by the event leave the call blank. hancing S&J IRON CORPORATION Horizontal Statements Model Assets - Liabilities Stockholders'Equity Revenue - E Regt >

Answer 1

Requirement A:

S&J IRON CORPORATION

Horizontal Statements Model

Balance Sheet

Income Statement

Assets

=

Liabilities

+

Stockholder's Equity

Revenue

-

Expenses

=

Net Income

Cash Flow

Event

Cash

=

+

Common Stock

+

PIC in Excess

-

=

March 1

$93,500

=

+

$34,000

+

$59,500

-

=

FA

$93,500

May 2

$320,000

=

+

$64,000

+

$256,000

-

=

FA

$320,000

Requirement B:

b	Common stock [34,00+64,000]	$98,000
c	Paid-in capital in excess of par [59,500+256,000]	$315,500
d	Total paid-in capital [98,000+315,500]	$413,500
e	Total assets [93,500+320,000]	$413,500

Calculations:

March 1:

Cash = 8,500 shares x $11 = $93,500

Common stock = 8,500 shares x $4 par = $34,000

Paid-in capital in excess of par = 8,500 shares x $7 ($11-$4) = $59,500

May:

Cash = 16,000 shares x $20 = $320,000

Common stock = 16,000 shares x $4 par = $64,000

Paid-in capital in excess of par = 16,000 shares x $16 ($20-$4) = $256,000

Total paid-in capital = Total Common stock + Total Paid-in capital in excess of par