Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 (The following information applies to the questions displayed below.] Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $37,000 cash from the issue of common stock. 2. Borrowed $33,000 cash from National Bank. 3. Earned cash revenues of $55,000 for performing services. 4. Paid cash expenses of $48,500. 5. Paid a $1,700 cash dividend to the stockholders. 6. Acquired an additional $27,000 cash from the issue of common stock. 7. Paid $8,000 cash to reduce the principal balance of the bank note. 8. Paid $60,000 cash to purchase land. 9. Determined that the market value of the land is $84,000. Required a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. The first event is recorded as an example. (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.) Event No. Assets MABEN COMPANY Horizontal Financial Statements Model for Year 1 Balance Sheet Income Statement = Liabilities + Stockholders' Equity Net Notes Common Revenue - Expense = Retained Revenue + Income Payable Stock Earnings + 37,000 + Statement of Cash Flows Cash + Land = 1. 37,000 + = 37,000 FA 2. + + + = 3. + = + + 4. 4. + + + = 5. + = + + + 6. + + + 7. 7 + = | + + = 8. + + + = + + + 9. Total 37,000 + 0 = 0 + 37,000 + 0 0 0 = 0 37,000 c. Identify the asset source transactions and related amounts for Year 1. Sources of Assets Event Amount Total sources of assets $ 0 b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet. Total assets d-1. Determine the net income that Maben would report on the Year 1 income statement. Net income d-2. Will dividends appear in the income statement? Yes No