Use the information below to answer the following question(s):Indicate how each event affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. Use only one letter for each element. You do not need to enter amounts.Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element and is offset by a decrease in that same element.) Sierra Co. issued 10,000 shares of common stock for $45 per share. The stock has a par value of $10.
What will be an ideal response?
(I) (NA) (I) (NA) (NA) (NA) (I)
The stock issuance will increase assets (cash) and increase stockholders' equity (common stock and paid-in capital in excess of par value-common).It is reported as a cash inflow in the financing activities section of the statement of cash flows.
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Receiving payments on an account receivable increases both equity and assets
Indicate whether the statement is true or false
When data available to a firm is too old to be useful, what type of forecasting technique should the firm consider?
a. Quantitative b. Qualitative c. Qualified d. Quantified
William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is:
A) an express condition. B) an implied-in-fact condition. C) an implied-in-law condition. D) a condition subsequent.
Plum Corporation acquired 80 percent of Saucy Corporation's common shares on January 1, 20X7, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Saucy Corporation. Saucy prepared the following balance sheet as of December 31, 20X8: Cash$70,000 Accounts Payable$40,000 Accounts Receivable 60,000 Bonds Payable 50,000 Inventory 80,000 Common Stock 150,000 Buildings and Equipment 400,000 Additional Paid-In Capital 50,000 Less: Accumulated Depreciation (120,000) Retained Earnings 200,000 Total Assets$490,000 Total Liabilities and Equities$490,000 On January 1, 20X9, Saucy declares a stock dividend of 9,000 shares on its $5 par value common stock. The current
market price per share of Saucy stock on January 1, 20X9, is $20.Begin with the information provided, but assume instead that Saucy declared a stock dividend of 3,000 shares on its $5 par value common stock. The investment elimination entry required to prepare a consolidated balance sheet immediately after the stock dividend is issued will include a debit to Retained Earnings for: A. $200,000. B. $65,000. C. $185,000. D. $155,000.