Determine the amount S&J Iron would report for common stock on the December 31,
ID: 2592791 • Letter: D
Question
Determine the amount S&J Iron would report for common stock on the December 31, 2016, balance sheet.
Newly formed S&J Iron Corporation has 186,000 shares of $3 par common stock authorized. On March 1, 2016, S&J Iron issued 8,500 shares of the stock for $10 per share. On May 2 the company issued an additional 20,500 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.
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, 2016, balance sheet?
Prepare journal entries to record the March 1 and May 2 transactions.
Determine the amount S&J Iron would report for common stock on the December 31, 2016, balance sheet.
Newly formed S&J Iron Corporation has 186,000 shares of $3 par common stock authorized. On March 1, 2016, S&J Iron issued 8,500 shares of the stock for $10 per share. On May 2 the company issued an additional 20,500 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.
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, 2016, balance sheet?
Prepare journal entries to record the March 1 and May 2 transactions.
Explanation / Answer
On December 31, 2016 balance sheet:
Common stock: $87000
Paid-in capital in excess of par: $367000
Total amount of capital contributed by owners: $454000
Total assets: $454000
Journal entries:
S&J Iron Corporation Horizontal Statements Model for 2016 Date Assets = Liabilities + Stockholders' Equity Income Statement Cash Flow Cash = Common Stock + Paid-in Capital + Retained Earnings Revenue - Expense = Net Income Mar. 1 85000 = - 25500 + 59500 + - = 85000 FA May. 2 369000 = - 61500 + 307500 + - = 369000 FA 454000 = 0 - 87000 + 367000 + 0 0 - 0 = 0 454000Related Questions
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