Burk Corp. completed the following transactions in 2018, the first year of operation:
1. Issued 30,000 shares of $10 par for $15 per share.
2. Issued 6,000 shares of $100 par, 5 percent, preferred stock at $101 per share.
3. Paid the annual cash to preferred shareholders.
4. Issued a 5 percent stock on the common stock. The market value at the declaration date was $19 per share.
5. Later that year, issued a 2-for-1 split on the 31,500 shares of outstanding common stock.
6. Earned $165,000 of cash revenues and paid $98,000 of cash operating expenses.
Required
a. Record each of these events in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element is not affected by the event.
b. Prepare the stockholders’ equity section of the at the end of 2018.
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