The following events were experienced by Abbot Inc.: 1. Issued cumulative preferred stock for cash. 2. Issued
Question:
The following events were experienced by Abbot Inc.:
1. Issued cumulative preferred stock for cash.
2. Issued common stock for cash.
3. Distributed a 2-for-1 stock split on the common stock.
4. Issued noncumulative preferred stock for cash.
5. Appropriated retained earnings.
6. Sold treasury stock for an amount of cash that was more than the cost of the treasury stock.
7. Distributed a stock dividend.
8. Paid cash to purchase treasury stock.
9. Declared a cash dividend.
10. Paid the cash dividend declared in Event 9.
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 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 anexample.
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Financial 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:
Abbot Inc Statements Model Balance Sheet Income Statement Statement of Event A...View the full answer
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
