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Mercury Corporation issued 6,500 shares of no-par common stock for $20 per share. Mercury also issued...

Mercury Corporation issued 6,500 shares of no-par common stock for $20 per share. Mercury also issued 3,800 shares of $45 par, 6 percent noncumulative preferred stock at $55 per share.

Required

Record these events 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.

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Answer #1
Horizontal statements for issue of common stock and preferred stock
Assets = Equity Revenue - Expense = Net income Cash flow
Cash Preferred stock + Common stock + Paid in capital excess
130000 130000 130000 FA
209000 171000 38000 209000 FA
Common stock value 6500*20 130000
Preferred stock value 3800*55 209000
Par value 3800*45 171000
Paid in capital excess 38000
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