a. In parallel columns, list the accounts that would be debited and credited for each of the following unrelated transactions:

(1) Provided services for cash.

(2) Recognized accrued salaries at the end of the period.

(3) Provided services on account.

(4) Paid cash for operating expenses.

(5) Acquired cash from the issue of common stock.

(6) Purchased supplies on account.

(7) Purchased land for cash.

(8) Paid a cash dividend to the stockholders.

b. Use a horizontal statements model to show how each event affects the balance sheet, income sheet, and statement of cash flows. Indicate whether the event increases (+), decreases (−), or does not affect (NA) each element of the financial statements. Also, in the Statement of Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is recorded as an example.

Balance Sheet Income Statement Statement of Cash Assets Liab. + Stk. Equity Rev. Exp. = Net Inc. Flows NA NA NA NA + OA