Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: 1. Acquired $33,000 cash from the issue of common stock. 2. Borrowed $45,000 cash from National Bank. 3. Earned cash revenues of $61,000 for performing services. 4. Paid cash expenses of $51,500. 5. Paid a $2,300 cash dividend to the stockholders. 6. Acquired an additional $33,000 cash from the issue of common stock. 7. Paid $11,000 cash to reduce the principal balance of the bank note. 8. Paid $48,000 cash to purchase land. 9. Determined that the market value of the land is $67,000. Required a. Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.)
Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: 1. Acquired $33,000 cash from the issue of common stock. 2. Borrowed $45,000 cash from National Bank. 3. Earned cash revenues of $61,000 for performing services. 4. Paid cash expenses of $51,500. 5. Paid a $2,300 cash dividend to the stockholders. 6. Acquired an additional $33,000 cash from the issue of common stock. 7. Paid $11,000 cash to reduce the principal balance of the bank note. 8. Paid $48,000 cash to purchase land. 9. Determined that the market value of the land is $67,000. Required a. Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need assistance in completing this question. Attached is all that are correct but still missing some information to complete the table.
Transcribed Image Text:Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation:
1. Acquired $33,000 cash from the issue of common stock.
2. Borrowed $45,000 cash from National Bank.
3. Earned cash revenues of $61,000 for performing services.
4. Paid cash expenses of $51,500.
5. Paid a $2,300 cash dividend to the stockholders.
6. Acquired an additional $33,000 cash from the issue of common stock.
7. Paid $11,000 cash to reduce the principal balance of the bank note.
8. Paid $48,000 cash to purchase land.
9. Determined that the market value of the land is $67,000.
Required
a. Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as
operating activities (OA), investing activities (IA), financing activities (FA), or net change in cash (NC). If the element is not affected by
the event, leave the cell blank. The first event is shown as an example. (Enter any decreases to account balances and cash
outflows with a minus sign. Not all cells will require entry.)
X Answer is not complete.
MABEN COMPANY
Horizontal Statements Model for 2018
Balance Sheet
Income Statement
Event
Statement of Cash
Flows
Assets
Liabilities
Stockholders' Equity
+
Net
Income
No.
Revenue
Expense
Notes
Payable
Common
Stock
Retained
Cash
Land
Earnings
1.
33,000
33,000
33,000
FA
+
%3D
2
45,000
45,000
45,000
FA
+
+
%3D
61,000 O
(51,500) O
61,000 O
(51,500) O
61,000 O
(51,500) O
3.
61,000 O
OA
+
%D
4.
51,500 O
(51,500) O
OA
+
+
%3D
(2,300) O
33,000 O
(11,000) O
5.
(2,300) O +
(2,300) O
FA
33,000 O
33,000 O +
FA
+
%3D
7.
(11,000)
(11,000) O +
FA
+
+
%3D
8.
|(48,000) O
48,000
(48,000) O
IA
9.
Total
59,200
48,000
34,000
66,000
7,200
51,500
9,500
59,200
NC
+
+ +
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