Finance Assignment | Professional Writing
Exercise 11-10A Effect of no-par common and par preferred stock on the horizontal statements model LO 11-4 Mercury Corporation issued 9,500 shares of no-par common stock for $30 per share. Mercury also issued 2,300 shares of $65 par, 6 percent noncumulative preferred stock at $75 per share. Required a. Record these events in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA). Investing activity (A), or financing activity (FA).
Use NA to indicate that an element was not affected by the event Income Statement – Expense – Net Income Assets – Balance Sheet Stockholders’ Equity Preferred . Common Stock Stock Revenue Casa Flow A Revenue t Stockholders’ Equity Cash Flow Expense Net income Event Cash PIC in Excess 1 – Issue of CS 2 – Issue of PS b. Prepare journal entries to record these transactions. (if no entry is required for a transaction/event, select “No journal entry required” in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit Cash Common stock, no par
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