! Required Information The following information applies to the questions displayed below.) Brice Co. completed the following transactions In Year 1, the first year of operation: 1. Issued 35,000 shares of no-par common stock for $10 per share. 2. Issued 9,600 shares of $20 par, 5 percent, preferred stock for $20 per share. 3. Pald a cash dividend of $9,600 to preferred shareholders. 4. Issued a 10 percent stock dividend on no-par common stock. The market value at the dividend declaration date was $25 per share. 5. Later that year, issued a 2-for-1 split on the shares of outstanding common stock. The market price of the stock at that time was $70 per share. 6. Produced $190,000 of cash revenues and incurred $88,000 of cash operating expenses. 7. Closed the revenue, expense, and dividend accounts to retained earnings. 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 (IA), or financing activity (FA) and net change in cash (NC). Use NA to indicate that an element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus slgn.) BRICE CO. Statements Model For Year 1 Balance Sheet Income Statement Cash Flow Event Assets = Liabilities + Stockholders'Equity Revenue Expenses Net Income Preferred Stock + Common Stock + Retained Earnings 1. + 2. + + + + + + 3. + 4. + + 5. memo + + = + + 6a - Revenues 6b - Expenses Totals + + 0 = 0 + 0 + 0 + 0 0 0 = 0 0 View transaction list Journal entry worksheet Issued 35,000 shares of no-par common stock for $10 per share. Note: Enter debits before credits. Event General Journal Debit Credit 1. Record entry Clear entry View general journal Issued 35,000 shares of no-par common stock for $10 per share. N Issued 9,600 shares of $20 par, 5 percent, preferred stock for $20 per share. Paid a cash dividend of $9,600 to preferred shareholders. Issued a 10 percent stock dividend on no-par common stock. The market value at the dividend declaration date was $25 per share. Later that year, issued a 2-for-1 split on the shares of outstanding common stock. The market price of the stock at that time was $70 per share. Note : = journal entry has been entered = shareholders. 4 Issued a 10 percent stock dividend on no-par common stock. The market value at the dividend declaration date was $25 per share. 5 Later that year; issued a 2-for-1 split on the shares of outstanding common stock. The market price of the stock at that time was $70 per share. 6 Produced $190,000 of cash revenues. 7 Incurred $88,000 of cash operating expenses. 8 Closed the revenue, expense, and dividend accounts to retained earnings. Note : journal entry has been entered Cash Retained Earnings Beg. Bal Beg. Bal End. Bal End. Bal Dividends Preferred Stock Beg. Bal Beg. Bal End. Bal End. Bal Service Revenue Operating Expenses Beg. Bal Beg. Bal End. Bal End. Bal Common Stock Beg. Bal End. Bal ! Required Information {The following information applies to the questions displayed below) Brice Co. completed the following transactions In Year 1, the first year of operation: 1. Issued 35,000 shares of no-par common stock for $10 per share. 2. Issued 9,600 shares of $20 par, 5 percent, preferred stock for $20 per share. 3. Pald a cash dividend of $9,600 to preferred shareholders. 4. Issued a 10 percent stock dividend on no-par common stock. The market value at the dividend declaration date was $25 per share. 5. Later that year, issued a 2-for-1 split on the shares of outstanding common stock. The market price of the stock at that time was $70 per share. 6. Produced $190,000 of cash revenues and Incurred $88,000 of cash operating expenses. 7. Closed the revenue, expense, and dividend accounts to retained earnings. c. Prepare the stockholders' equity section of the balance sheet at the end of Year 1. BRICE COMPANY December 31, Year 1 Stockholders' equity Total paid-in capital $ 0 Total stockholders' equity $ 0