Edwards Inc. experienced the following events:
1. Issued common stock for cash.
2. Declared a cash dividend.
3. Issued noncumulative preferred stock for cash.
4. Appropriated retained earnings.
5. Distributed a stock dividend.
6. Paid cash to purchase treasury stock.
7. Distributed a 2 for 1 stock split.
8. Issued cumulative preferred stock for cash.
9. Paid a cash dividend that had previously been declared.
10. Sold treasury stock for cash at a higher amount than the cost of the treasury stock.
Required
Show the effect of each event on the elements of the financial statements using a horizontal statements model like the one shown here. Use + for increase, for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or a financing activity (FA). The first transaction is entered as an example.
|
Event |
Assets |
= |
Liab. |
+ |
Equity |
Rev. |
Exp. |
= |
Net Inc. |
Cash Flow |
||
|
1 |
+ |
NA |
+ |
NA |
NA |
NA |
+ |
FA |
||||