Texas Corporation experienced the following transactions during 2011.
1. Paid a cash dividend to the stockholders.
2. Acquired cash by issuing additional common stock.
3. Signed a contract to perform services in the future.
4. Performed services for cash.
5. Paid cash expenses.
6. Sold land for cash at an amount equal to its cost.
7. Borrowed cash from a bank.
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 Statement of Event No. Cash + Land = N. Pay + C. Stock. + Ret. Ear. Rev. - Exp. = Net Inc. Cash Flows 1. D + NA = NA + NA + D NA NA == NA D FA