a. Enter the following headings for the horizontal statements model onto a blank spreadsheet.

b. Under the appropriate headings, record the effects of each of the following accounting events for the first month of operations. The first event has been recorded as an example.

(1) Acquired $6,100 from the issue of common stock.

(2) Paid $4,400 to purchase land.

(3) Borrowed $3,000 cash.

(4) Provided services to customers and received $700 in cash.

(5) Paid $300 for expenses.

(6) Paid a $100 dividend to the stockholders.

c. Using formulas, sum each of the quantitative columns to arrive at the end-of-month amounts reported on the financial statements.

Spreadsheet Tips

(1) Center the heading Balance Sheet across columns by entering the entire heading in cell B1. Position the cursor on B1 until a fat cross appears. Click and drag the cursor across B1 through G1. Click on the Merge and Center icon (it is highlighted in the screen in the toolbar).

(2) Enter arithmetic signs as headings by placing an apostrophe in front of the sign. For example, to enter the equal sign in cell D4, enter ‘=.

(3) Copy cells by positioning the cursor in the bottom right corner of the cell to copy from (such as cell O6) until a thin cross appears. Click and drag the cursor down through the desired locations to copy to (through cell O11).

(4) To enter the dollar sign, choose Format, Cells, and Currency.

 

	Balance Sheet							Income Statement						Statement of
	Assets			Liabilities	Equity									Cash Flows
Event				Loan	Contributed	Retained						Net
Number	Cash	Land	=	Payable	Capital	Earnings		Revenue	-	Expense	=	Income		Amount	Activity
1	$6,100				$6,100									$6,100	Financing
2
3
4
5
6
Totals	$6,100	$0		$0	$6,100	$0		$0		$0		$0		$6,100
		$6,100		$6,100
		Total		Total
		Assets		Claims