Rooney Consulting experienced the following transactions during 2011.
1. Acquired cash by issuing common stock.
2. Received cash for performing services.
3. Paid cash expenses.
4. Borrowed cash from the local bank.
5. Purchased land for cash.
6. Paid cash to reduce the principal balance of the bank loan.
7. Paid a cash dividend to the stockholders.
8. Determined that the market value of the land is higher than its historical cost.
Required
Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (I), decreases (D), or does not affect (NA) each element of the financial statements. 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.

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Balance Sheet Income Statement Event Statement of No. Cash + Land = N. Pay + C. Stock. + Ret. Ear. Rev. - Exp. = Net Inc. Cash Flows 1. + NA =1 NA NA NA NA NA | FA