Chapter 2 HW - LO 1-4 G 1 16.66 points eBook Print References Shamrock Sweets, a local chocolate shop, experienced the following events during its first year of operations, Year 1: 1. Acquired $486,000 cash needed to start the company by issuing common stock. 2. Purchased a retail building to make and sell chocolate for $236,000 cash. 3. Earned $83,000 cash from the sale of chocolates during its first year of operations. 4. Borrowed $186,000 cash from a local bank to assist in financing future operations. Event Number Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. The first transaction is shown as an example. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells require an input - leave cells blank if there is no corresponding input needed. 1. 2. 3. 4. Total Cash Assets + 486,000 + + Building = (236,000) 186,000+ 672,000+ (236,000) = Balance Sheet Liabilities + Notes Payable + + 186,000+ 186,000 + Stockholders' Equity Retained Earnings Common Stock 486,000+ 486,000 + Saved + + + 83,000 83,000 Income Statement Revenue 83,000 83,000 Expenses = = 0= Net Income 0 D Statement of Cash Flows 486,000 (236,000) 250,000 Help FA IA NC IA OA Save & Exit Se

Shamrock Sweets, a locel chocolate shop, experienced the following events during its first year of operatians, Year 1 1. Acquired $486,000 cash needed to start the compony by issuing common stock. 2. Purchased a retall building to make and 3es chocolste for $236,000 cash 3. Eamed $83,000 cash from the sale of chocolates during its first year of operations. 4. Borrowed $186,000 cash from a local bank to assist in financing future operations Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows More specifically, fecerd the amounts of the events inte the model. The first transaction is shown as an example. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign, Not all cells require an input - leave cells blank if there is no cortesponding input needed. Shamrock Sweets, a locel chocolate shop, experienced the following events during its first year of operatians, Year 1 1. Acquired $486,000 cash needed to start the compony by issuing common stock. 2. Purchased a retall building to make and 3es chocolste for $236,000 cash 3. Eamed $83,000 cash from the sale of chocolates during its first year of operations. 4. Borrowed $186,000 cash from a local bank to assist in financing future operations Required: Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows More specifically, fecerd the amounts of the events inte the model. The first transaction is shown as an example. Note: In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. Enter any decreases to account balances and cash outflows with a minus sign, Not all cells require an input - leave cells blank if there is no cortesponding input needed