C The Ramires, Incorporated experienced the following events during its first year of operations, Year 1 1. Acquired $56,000 cash by issuing common stock 2, Earned $52,000 cash revenue. 3. Paid $27,000 cash for operating expenses 4. Borrowed $15,000 cash from a bank. 5. Paid $40,000 cash to purchase land. 6. Paid a $1,000 cash dividend. Required a. Show the effects of the events on the financial sfatements using a horizontal statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. The first event is recorded as an example. b. Prepare a formal income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows. THE RAMIRES, INCORPORATED Horizontal Financial Statements Model for Year 1 Balance Sheet Income Statement Statement of Net Cash Flows Expense Revenue Stockholders' Equity Liabilities Assets Income Event No. Notes Payable Retained Common Land Cash Earnings Stock FA 56,000 56,000 Ces 56,000 1 2. 3 4 5 6. Totals Required B Ine Stmt Required A Required ARequired B Inc Required B Stmt Required B Stmt Cash Flows Required B Bal Sheet Stmt Stkholder Eq Hint Prepare an income statement for Year 1 THE RAMIRES, INCORPORATED Income Statement Print For the Period Ended December 31, Year 1 References