Exercise 8-10 Effect of no-par common and par preferred stock on the horizontal statements model LO 8-4 Mercury Corporation issued 4,000 shares of no-par common stock for $15 per share. Mercury also issued 4,900 shares of $35 par, 6 percent noncumulative preferred stock at $45 per share. Required: 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). If an element was not affected by the event, leave the cell blank. MERCURY CORPORATION Horizontal Statements Model Balance Sheet Income Statement Statement of Cash Flow Assets Revenue Expense Net Income Stockholders' Equity Common + + Stock Event Preferred Stock Cash PIC in Excess 1 - Issue of CS + + = 2 - Issue of PS + +