Edwards Inc. experienced the following events:

1. Issued common stock for cash.

2. Declared a cash dividend.

3. Issued noncumulative preferred stock for cash.

4. Appropriated retained earnings.

5. Distributed a stock dividend.

6. Paid cash to purchase treasury stock.

7. Distributed a 2-for-1 stock split.

8. Issued cumulative preferred stock for cash.

9. Paid a cash dividend that had previously been declared.

10.Sold treasury stock for cash at a higher amount than the cost of the treasury stock.

Required:

Show the effect of each event on the elements of the financial statements using a horizontal statements model like the one shown here. Use + for increase, - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or a financing activity (FA). The first transaction is entered as an example.

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Event Assets =1 Liab. Equity Rev. - Exp. = Net Inc. Cash Flow 1 + NA + NA NA NA + FA