Exercise $2-2$A $($Static$)$ Show how accounting events affect a horizontal financial statements model LO $2-1$

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

Acquired cash by issuing common stock.

Paid a cash dividend to the stockholders.

Paid cash for operating expenses.

Borrowed cash from a bank.

Provided services and collected cash.

Purchased land with cash.

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

Required

a$.$ 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$)$ or decreases $($D$),$ or$,$ if there is no effect, leave the cell blank. Also, in the 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.