Chapter 1, Problem 26E

a.

To determine

Indicate whether each event is an asset source, asset use or exchange transaction.

b.

To determine

Use a horizontal statements model to show how each events affects the balance sheet, income statement and statement of cash flows. Indicate whether the events “increases” (I), “decrease” (D), or does “not affect” (NA) each element of the financial statements. Also, in the statement of cash flows column classify the cash flows as operating activities (OA), Investing activities (IA) or Financing activities (FA).