Question

Newly formed S&J Iron Corporation has 188,000 shares of $3 par common stock authorized. On March...

Newly formed S&J Iron Corporation has 188,000 shares of $3 par common stock authorized. On March 1, Year 1, S&J Iron issued 9,500 shares of the stock for $13 per share. On May 2, the company issued an additional 19,000 shares for $19 per share. S&J Iron was not affected by other events during Year 1.

Required
a. Record the transactions in a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)
b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet.
c. Determine the amount S&J Iron would report for paid-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, Year 1, balance sheet?
Complete this question by entering your answers in the tabs below.

  • Req A
  • Req B to E

Record the transactions in a horizontal statements model. (In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)
S&J IRON CORPORATION
Horizontal Statements Model
Balance Sheet Income Statement
Event Assets = Liabilities + Stockholders’ Equity Revenue – Expense = Net Income Statement of Cash Flows
Cash = + Common Stock + PIC in Excess – =
March 1 = + + – =
May 2 = + + – =
  • Req A
  • req B
  • Req A
  • Req B to E

b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet.
c. Determine the amount S&J Iron would report for paid-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, Year 1, balance sheet?

b. Common stock
c. Paid-in capital in excess of par
d. Total paid-in capital
e. Total assets
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Homework Answers

Answer #1

a.

S&J IRON CORPORATION
Horizontal Statements Model
Balance Sheet Income Statement Statement of
Cash Flows
Event Assets = Liabilities + Stockholders' Equity Revenue - Expense = Net Income
Cash = + Common Stock + PIC in Excess - =
March 1 123500 = + 28500 + 95000 - = 123500 FA
May 2 361000 = + 57000 + 304000 - = 361000 FA
b. Common stock $             85,500
c. Paid-in capital in excess of par $ 399,000
d. Total paid-in capital $ 484,500
e. Total assets $ 484,500
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