The following events were experienced by Halbart Inc.: 1. Issued common stock for cash. 2. Distributed a
Question:
The following events were experienced by Halbart Inc.:
1. Issued common stock for cash.
2. Distributed a 2-for-1 stock split on the common stock.
3. Appropriated retained earnings.
4. Issued cumulative preferred stock for cash.
5. Sold treasury stock for an amount of cash that was more than the cost of the treasury stock.
6. Issued noncumulative preferred stock for cash.
7. Paid cash to purchase treasury stock.
8. Declared a cash dividend.
9. Distributed a stock dividend.
10. Paid the cash dividend declared in Event 8.
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 d e crease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first transaction is entered as an example.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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:
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds