Texas Corporation experienced the following transactions during 2012. 1. Paid a cash dividend to the stockholders. 2.
Question:
Texas Corporation experienced the following transactions during 2012.
1. Paid a cash dividend to the stockholders.
2. Acquired cash by issuing additional common stock.
3. Signed a contract to perform services in the future.
4. Performed services for cash.
5. Paid cash expenses.
6. Sold land for cash at an amount equal to its cost.
7. Borrowed cash from a bank.
8. Determined that the market value of the land is higher than its historical cost.
Required
Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financial statements. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first transaction is shown as anexample.
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A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
Texas Corporation Horizontal Statements Model for 2...View the full answer
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
