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The following information pertains to Rising Suns Corporation at January 1, Year 2: Common stock, $20 par, 50,000 shares authorized, 12,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings Rising Suns Corporation completed the following events during Year 2: 1. Issued 5,260 shares of $20 par common stock for $30 per share. 2. Repurchased 1,260 shares of its own common stock for $25 per share. 3. Resold 630 shares of treasury stock for $30 per share. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Beginning Assets Cash 482,500 = Common Stock 252,000 + Balance Sheet Stockholders' Equity Paid-in Capital from Treasury Stock $ 252,000 126,000 $ 104,500 Paid-in Capital in Excess-Common Stock 126,000 + Treasury Stock Retained Earnings 104,500 Revenue Income Statement Expenses = Net Income Statement of Cash Flows

The following information pertains to Rising Suns Corporation at January 1, Year 2: Common stock, $20 par, 50,000 shares authorized, 12,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings Rising Suns Corporation completed the following events during Year 2: 1. Issued 5,260 shares of $20 par common stock for $30 per share. 2. Repurchased 1,260 shares of its own common stock for $25 per share. 3. Resold 630 shares of treasury stock for $30 per share. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Beginning Assets Cash 482,500 = Common Stock 252,000 + Balance Sheet Stockholders' Equity Paid-in Capital from Treasury Stock $ 252,000 126,000 $ 104,500 Paid-in Capital in Excess-Common Stock 126,000 + Treasury Stock Retained Earnings 104,500 Revenue Income Statement Expenses = Net Income Statement of Cash Flows

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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The following information pertains to Rising Suns Corporation at January 1, Year 2: Common stock, $20 par, 50,000 shares authorized, 12,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings Rising Suns Corporation completed the following events during Year 2: 1. Issued 5,260 shares of $20 par common stock for $30 per share. 2. Repurchased 1,260 shares of its own common stock for $25 per share. 3. Resold 630 shares of treasury stock for $30 per share. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Assets Cash Beginning 1 2 3 Total * NC = Net change in cash = 482,500 = = = = Common Stock 252,000+ + + + + Balance Sheet Stockholders' Equity Paid-in Capital from Treasury Stock Paid-in Capital in Excess-Common + Stock 126,000 + + $ 252,000 126,000 $ 104,500 + + Treasury Stock Retained Earnings 104,500 Revenue Income Statement Expenses - Net Income = = = Statement of Cash Flows NC
Transcribed Image Text:The following information pertains to Rising Suns Corporation at January 1, Year 2: Common stock, $20 par, 50,000 shares authorized, 12,600 shares issued and outstanding Paid-in capital in excess of par, common stock Retained earnings Rising Suns Corporation completed the following events during Year 2: 1. Issued 5,260 shares of $20 par common stock for $30 per share. 2. Repurchased 1,260 shares of its own common stock for $25 per share. 3. Resold 630 shares of treasury stock for $30 per share. Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. Event Number Assets Cash Beginning 1 2 3 Total * NC = Net change in cash = 482,500 = = = = Common Stock 252,000+ + + + + Balance Sheet Stockholders' Equity Paid-in Capital from Treasury Stock Paid-in Capital in Excess-Common + Stock 126,000 + + $ 252,000 126,000 $ 104,500 + + Treasury Stock Retained Earnings 104,500 Revenue Income Statement Expenses - Net Income = = = Statement of Cash Flows NC
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