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