Multistep income statement and classified balance sheet

LO 10 Problem 7-30 Multistep income statement and classified balance sheet (Edmonds. Survey of Accounting. 2012)

Required

Use the following information to prepare a multistep income statement and a classified balance sheet for Douglas Company for 2012.Hint: Some of the items willnot appear on either statement, and ending retained earnings must be calculated.) (Edmonds. Survey of Accounting. 2012)

· Problem 8-24

LO 4-8 Problem 8-24Effects of equity transactions on financial statements

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. (Edmonds. Survey of Accounting. 2012)

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 an example. (Edmonds. Survey of Accounting. 2012