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Exercise 11-8A Effect of issuing common stock on the balance sheet LO 11-4
Newly formed S&J Iron Corporation has 151,000 shares of $7 par common stock authorized. On March 1, Year 1, S&J Iron issued 8,500 shares of the stock for $12 per share. On May 2, the company issued an additional 17,000 shares for $20 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 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.
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