declaration date w 5. Later that year. issued a 2-for-I split on the 21,000 shares of o lock Car Earned $210,000 of cash service revenues and paid $140,000 of cash operating expenses lished vantages may be a be Required a. Record each of 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 Problem 8 (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the event The follow Rev. - Exp. = Net Inc. Cash Flow = Liab. + Equity 1. Issued PIC in 2. Issued PIC in Pfd. Stk. + Com. Stk. + Excess PS + Excess CS + Ret. Earn. 3. Distri 4. Issue b. Prepare the stockholders' equity section of the balance sheet at the end of 2012. 5. App 6. Sold 4, 7 Problem 8-22 Analyzing the stockholders' equity section of the balance sheet 7. Dist The stockholders' equity section of the balance sheet for Brawner Company at December 3] 8. Paid 2012, is as follows: 9. Dec Stockholders' Equity 10. Pai hare: $10 Paid-in capital are: $.60 Preferred stock, ? par value, 6% cumulative, Requir 50,000 shares authorized, 30,000 shares issued Show and outstanding $300,000 ments Common stock, $10 stated value, 150,000 shares the Ca authorized, 50,000 shares issued and ? outstanding 500,000 Paid-in capital in excess of par-Preferred (IA) 30,000 Paid-in capital in excess of stated value-Common 200,000 Total paid-in capital $1,030,000 Retained earnings Ev 250,000 Treasury stock, 1,000 shares (100,000) Total stockholders' equity $1,180,000 Note: The market value per share of the common stock is $25, and the market value per share of the preferred stock is $12. Required AN a. What is the par value per share of the preferred stock? b. What is the dividend per share on the preferred stock? AT c. What is the number of common stock shares outstanding? mon stock? d. What was the average issue price per share (price for which the stock was issued) of the com- stock. e. Explain the difference between the average issue price and the market price of the common f. If Brawner declared a 2-for-1 stock split on the common stock, how many shares would be outstanding after the split? What amount would be transferred from the retained earnings account because of the stock split? Theoretically, what would be the market price of the common stock immediately after the stock split