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Exercise 11-10A Effect of no-par common and par preferred stock on the horizontal ...

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Accounting

Exercise 11-10A Effect of no-par common and par preferred stock on the horizontal
statements model
Mercury Corporation issued 6,000 shares of no-par common stock for $45 per share. Mercury also
issued 3,000 shares of $50 par, 5 percent noncumulative preferred stock at $52 per share.
Required
a. Record these events in a horizontal statements model like the following one. In the Cash Flow
column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event.
LO 11-4
Assets = Equity Rev. Exp. = Net Inc. Cash Flow
Cash = Pfd. Stk.+ Com. Stk.+ PIC in Excess
b. Prepare journal entries to record these transactions.

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