Question

Newly formed S&J Iron Corporation has 52,000 shares of $4 par common stock authorized. On March 1, 2018, S&J Iron issued 11,500 shares of the stock for $11 per share. On May 2, the company issued an additional 16,500 shares for $22 per share. S&J Iron was not affected by other events during 2018. Required: 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). If an element was not affected by the event, leave the cell blank. Determine the amount S&J Iron would report for common stock on the December 31, 2018, balance sheet. Determine the amount S&J Iron would report for paid-in capital in excess of par. What is the total amount of capital contributed by the owners? 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. Reg A Req B to E 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). If an element was not affected by the event, leave the cell blank. S&J IRON CORPORATION Horizontal Statements Model Balance Sheet Income Statement Liabilities + Stockholders' Equity Revenue - Expense = Net Income Common PIC in Stock Excess = Cash Flow Assets Cash Event March 1 May 2 < Reg A Req B to E >

Answer 1

A.

A B C D E F G H I J K L M N O P Cash Flow Event Balance sheet Income statement Assets = Liabilities + Stockholders' equity Revenue - Expense = Net income Cash Common | PIC in stock | excess $ 126,500 $ 46,000 $80,500 $ 363,000 $ 66,000 $ 297,000 $ 489,500 $ 112,000 $377,500 March. 1 May.2 Total $ 126,500| $363,000| $ 489,500 FA FA

Working note:

A B C D E F G н J K L M N ор Balance sheet = Liabilities + Stockholders' equity Income statement Revenue - Expense = Net income Cash Flow Assets Event Cash Common stock + PIC in excess FA March. 1 =11500*11 May.2 =16500*22 Total =C6 C7 =11500*4 =16500*4 =G6+G7 =C6-G6 =C7-G7 =16+17 =C6 =C7 =06+07 FA

B to E:

b. Common stock c. Paid in capital in excess of par d. Total paid in capital (112,000+377,500) e. Total assets 112,000 377,500 489,500 489,500