Ch The Candle Shop experienced the following events during its first year of operations, Year 1: 1. Acquired cash by issuing common stock. 2. Paid a cash dividend to the stockholders. 3. Paid cash for operating expenses. 4. Borrowed cash from a bank. 5. Provided services and collected cash. 6. Purchased land with cash. 7. Determined that the market value of the land is higher than the historical cost. Required a. Indicate whether each event is an asset source, use, or exchange transaction. (Select "NA" if there is no effect on the "Act classification".) Event Activity classification 1. 3. Check my we b. 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 (1), decreases (D), or does not affect (NA) each element of the financial statements. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or not applicable (NA). The first transaction is shown as an example. ook Tences Statement of Cash Flows Event No. Assets Cash + Land THE CANDLE SHOP Horizontal Statements Model for Year 1 Balance Sheet Income Statement - Liabilities - Stockholders' Equity Net - Notes + Common Retained Revenue - Expense = Income Payable Stock Earnings - NA = NA Effect on Cash Type of Activity + NA NA 1. 2. NA # #