Accounting

Statement of Cash Flow Hint: Pay attention to increase, decrease, received and paid Complete the following statement of cash flows using the indirect method:

Statement of Stockholders Equity Problem

M Corporation had the following beginning balances on 1/1/11:

Common Stock: 100,000

APIC: 2,600,000

Retained Earnings: 222,000

During 2011 the company recorded the following transactions:

1/2/11 Issued 10,000 shares of $100 par value cumulative preferred stock at par.

7/1/11 Issued 40,000 shares $1 par value common stock for $42 per share.

10/1/11 Repurchased 16,000 shares of treasury stock for $34 per share. M Corp. uses the cost method to account for treasury shares.

12/1/11 Sold 3,000 shares of treasury stock for $29 per share.

12/30/11 Declared and paid a dividend of $0.20 per share on common stock and a 6% dividend on the preferred stock.

M Corporation had net income of $380,000 for 2011.

Indicate the impact that the transactions for M Company have on its owner equity accounts. Place the appropriate amounts in the table below. If an amount is negative, show the amount in parentheses. Make sure to start with beginning balances.

DateTransactionPreferred StockCommon StockAPIC - Common StockRetained EarningsTreasury Stock

1/1/2011Beginning balance

1/2/2011Issue preferred stock

7/1/2011Issue common stock

10/1/2011Repurchase treasury stock

12/1/2011Sell treasury stock

12/30/2011Declare and pay dividends

12/31/2011Net income

12/31/2011Ending balance