Exercise 11-10A Effect of no-par common and par preferred stock on the horizontal statements model LO 11-4 Mercury Corporation issued 10,000 shares of no-par common stock for $25 per share. Mercury also issued 4,000 shares of $60 par, 6 percent noncumulative preferred stock at $70 per share. Required a. Record these events in a horizontal statements model. 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. Balance Sheet Income Statement - Expense = Net Income Assets Revenue Cash Flow Stockholders' Equity Common Stock Event Preferred Stock Cash PIC in Excess 1 - Issue of CS + 2 - Issue of PS + b. Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the issue of common stock. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal b. Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet