The following events were experienced by Carver 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 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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Event No. AssetsLiah.Equity Rev Exp. = Net Inc. Cash Flow NA +NA NA NA + FA