vent No. equired 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), or financing activities (FA). If the element is not affected by the event, leave the c 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.) 1. 2. 3. 4. 5. 6. 7. 3. 9. Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $35,000 cash from the issue of common stock. 2. Borrowed $35,000 cash from National Bank. 3. Earned cash revenues of $53,000 for performing services. 4. Paid cash expenses of $47,500. tal 5. Paid a $1,500 cash dividend to the stockholders. 6. Acquired an additional $25,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $58,000 cash to purchase land. 9. Determined that the market value of the land is $81,000. Cash Assets + 35,000+ + + + + + + Land Balance Sheet -Liabilities Notes Payable = = = MABEN COMPANY Horizontal Statements Model for Year 1 + + + + + + + + + Stockholders' Equity Common Retained Revenue Stock Earnings 35,000+ + + + + + + Income Statement + Expense - = = = = Net Income Statement of Cash Flows 35,000 FA

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
3
Event
No.
Required information
[The following information applies to the questions displayed below.]
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:
1. Acquired $35,000 cash from the issue of common stock.
2. Borrowed $35,000 cash from National Bank.
3. Earned cash revenues of $53,000 for performing services.
4. Paid cash expenses of $47,500.
5. Paid a $1,500 cash dividend to the stockholders.
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), or financing activities (FA). 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.)
1.
2.
3.
4.
5.
6.
7.
8.
9.
Total
6. Acquired an additional $25,000 cash from the issue of common stock.
7. Paid $9,000 cash to reduce the principal balance of the bank note.
8. Paid $58,000 cash to purchase land.
9. Determined that the market value of the land is $81,000.
Assets
Cash
35,000+
+ Land
+
+
+
+
+
+
+
=
=
MABEN COMPANY
Horizontal Statements Model for Year 1
Balance Sheet
Liabilities
Notes
Payable
+
+
+
+
+
+
+
+
+
Stockholders' Equity
Common
Retained Revenue
Stock Earnings
35,000+
+
+
+
+
Income Statement
+
+
Expense
=
=
Net
Income
Statement of Cash
Flows
35,000 FA
Transcribed Image Text:3 Event No. Required information [The following information applies to the questions displayed below.] Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $35,000 cash from the issue of common stock. 2. Borrowed $35,000 cash from National Bank. 3. Earned cash revenues of $53,000 for performing services. 4. Paid cash expenses of $47,500. 5. Paid a $1,500 cash dividend to the stockholders. 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), or financing activities (FA). 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.) 1. 2. 3. 4. 5. 6. 7. 8. 9. Total 6. Acquired an additional $25,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $58,000 cash to purchase land. 9. Determined that the market value of the land is $81,000. Assets Cash 35,000+ + Land + + + + + + + = = MABEN COMPANY Horizontal Statements Model for Year 1 Balance Sheet Liabilities Notes Payable + + + + + + + + + Stockholders' Equity Common Retained Revenue Stock Earnings 35,000+ + + + + Income Statement + + Expense = = Net Income Statement of Cash Flows 35,000 FA
Expert Solution
Step 1: Accounting Equation

The Accounting Equation is the foundation of double-entry bookkeeping and accounting, representing the relationship between a company's assets, liabilities, and equity.

Assets = Liabilities + Equity

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