Pine Land Co. was formed when it acquired cash from the issue of common stock. The company then issued bonds at a premium on January 1, Year 1. Interest is payable annually on December 31 of each year, beginning December 31, Year 1. On January 2, Year 1, Pine Land Co. purchased a piece of land and leased it for an annual rental fee. The rent is received annually on December 31, beginning December 31, Year 1. At the end of the eight-year period (December 31, Year 8), the land was sold at a gain, and the bonds were paid off. A summary of the transactions for each year follows:

Year 1
1. Acquired cash from the issue of common stock.
2. Issued eight-year bonds.
3. Purchased land.
4. Received land rental income.
5. Recognized interest expense including the straight-line amortization of the premium and made the cash payment for interest on December 31.

Year 2–Year 7
6. Received land rental income.
7. Recognized interest expense, including the straight-line amortization of the premium, and made the cash payment for interest on December 31.

Year 8
8. Sold land at a gain.
9. Retired bonds at face value.

Required
Identify each of these 13 events and transactions as an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Explain how each event affects assets, liabilities, equity, net income, and cash flow by placing a + for increase, − for decrease, or NA for not affected under each category. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). The first event is recorded as an example.

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Retalned Earnings NA Net Income Event No. Types of Event Common Stock Llabilitles Assets Cash Flow AS 1. NA NA + FA