The Candle Shop experienced the following events during its first year of operations, Year 1:

1. Acquired cash by issuing common stock.

2. Paid a cash dividend to the stockholders.

3. Paid cash for operating expenses.

4. Borrowed cash from a bank.

5. Provided services and collected cash.

6. Purchased land with cash.

7. Determined that the market value of the land is higher than the historical cost.

Required

Use a horizontal financial 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 part of the financial statements model. 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.