Maben Company was started on January $1,$ Year $1,$ and experienced the following events during its first year of operation:

Acquired $$33,000$ cash from the issue of common stock.

Borrowed $$37,000$ cash from National Bank.

Earned cash revenues of $$51,000$ for performing services.

Paid cash expenses of $$46,500.$

Paid a $$1,300$ cash dividend to the stockholders.

Acquired an additional $$23,000$ cash from the issue of common stock.

Paid $$9,000$ cash to reduce the principal balance of the bank note.

Paid $$56,000$ cash to purchase land.

Determined that the market value of the land is $$78,000.$

Required:

Record the preceding transactions in the Horizontal Financial Statements Model. Also, in the Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$ If the element is not affected by the event, leave the cell blank. The first event is shown as an example.

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed.

Answer rating: 100% (QA)

Answer Heres the Horizontal Financial Statements Model recording the transactions for Maben Company ... View the full answer