Leaf Company experienced the following events during its first-year operations:
1. Acquired $65,000 cash from the issue of common stock.
2. Borrowed $18,000 from the First City Bank.
3. Earned $48,000 of cash revenue.
4. Incurred $34,000 of cash expenses.
5. Paid a $5,000 cash dividend.
6. Paid $40,000 to purchase land.

Required
a. Identify the events that will affect the income statement.
b. Prepare an income statement that shows the results of Year 1 operations.
c. What account on the left side of the accounting equation increased when the revenue account increased?