Problem 8-27 Effects of equity transactions on financial statements LO 8-4, 8-5, 8-6, 8-7, 8-8 The following events were experienced by Sequola, Inc: 1. Issued cumulative preferred stock for cash. 2 Issued common stock for cash. 3. Issued noncumulative preferred stock for cash. 4. Pald cash to purchase treasury stock. 5. Sold treasury stock for an amount of cash that was more than the cost of the treasury stock. 6. Declared a cash dividend. 7. Declared a 2-for-1 stock split on the common stock. 8. Distributed a stock dividend. 9. Appropriated retained earnings. 10. Paid a cash dividend that was previously declared. Required Show the effect of each event on the elements of the financial statements using a horizontal statements model like the following one. Use - for increase. - for decrease, and leave the cell blank if there is no effect. 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. The first transaction is entered as an example. SEQUOIA, INC. Horizontal Statements Model Balance Sheet Income Statement = Liabilities + Stockholders Net Revenue Expenses Equity Income Event Assets Cash Flows FA 1 2 3 4 5 8 7 8. 10