Question: a. Indicate whether each event is an asset source, use, or exchange transaction. b. Use a horizontal statements model to show how each event affects

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

b. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (I), decreases (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). The first transaction is shown as an example.

Balance Sheet Income Statement Statement of No. Cash + Land = N.Pay + C. Stock. + Ret. Ear. Rev.-Exp. = Net Inc. Cash Flows Event +NA NA-NA=NA l FA

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