Question

Newly formed S&J Iron Corporation has 78.000 shares of $5 par common stock authorized. On March 1, 2018, S&J Iron issued 10.500 shares of the stock for $12 per share. On May 2, the company issued an additional 16,500 shares for $19 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 (IA), or 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. Req A Reg 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 Assets Cash Flow Event Cash March 1 May 2 < ReqA Req B to E>

Answer 1

Answers

• Requirements asked

Requirement A
Event	Cash	Liabilities	Common Stock	PIC in Excess	Revenues	Expenses	Net Income	Cash Flow
Mar-01	$126,000		$52,500	$73,500				$126,000	FA
May-02	$313,500		$82,500	$231,000				$313,500	FA
	$439,500	$0	$135,000	$304,500	$0	$0	$0	$439,500	NC

b.	Common Stock	$135,000
c.	Paid in Capital in Excess of Par	$304,500
d.	Total Paid in Capital	$439,500
e.	Total Assets	$439,500