Mercury Corporation issued 3,000 shares of no-par common stock for $25 per share. Mercury also issued 1,400 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 Assets Stockholders' Equity Revenue - Expense Net Income Flow Event Cash Preferred Stock + Common Stock + PIC in Excess 1 - Issue of CS + FA 2 - Issue of PS FA