Smith & Co, experienced the following six events in its first year of operations:
1. Shareholders contributed \($60,000\) cash.
2. Purchased land for \($40,000\) cash.
3. Borrowed \($18,000\) in cash from a bank.
4. Provided services for \($16,000\), which will be paid to Smith & Co. next year.
5. Paid \($11,000\) cash for miscellaneous operating expenses, 

6. Paid a \($1,000\) cash dividend to shareholders.
Required:

Using the balance sheet equation as illustrated in this chapter, identify how each of the above six events affected the various accounts involved. Prepare an income statement, a statement of shareholders’ equity, a balance sheet, and a statement of cash flow for the first year of operations. What is your assessment of the company’s financial performance in its first year of operations?