Question
For this assignment, complete the Problems that appear at the end of: Chapter 1: Problem: 1-35 (Items 1-8) GBA 5205 Accounting Survey of Accounting, Fifth
For this assignment, complete the Problems that appear at the end of:
Chapter 1: Problem: 1-35 (Items 1-8)
GBA 5205 Accounting
Survey of Accounting, Fifth edition by Edmonds (ISBN 9781307078473)
Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation:
1. Acquired $30,000 cash from the issue of common stock. 2. Borrowed $40,000 cash from National Bank.
3. Earned cash revenues of $48,000 for performing services. 4. Paid cash expenses of $25,000.
5. Paid a $1,000 cash dividend to the stockholders.
6. Acquired an additional $20,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $53,000 cash to purchase land
Required
a. Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). The first event is shown as an example.
b. Determine the amount of total assets that Maben would report on the December 31, 2018, balance sheet.
c. Identify the asset source transactions and related amounts for 2018.
d. Determine the net income that Maben would report on the 2018 income statement. Explain why dividends do not appear on the income statement.
e. Determine the net cash flows from operating activities, financing activities, and investing activities that Maben would report on the 2018 statement of cash flows.
f. Determine the percentage of assets that were provided by investors, creditors, and earnings. Round to three decimal places.
g. What is the balance in the Retained Earnings account immediately after Event 3 is recorded?
PROBLEM 1-35
a.
| Maben Company Horizontal Statements Model for 2018 | ||||||||||||||||||
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| Balance Sheet |
| Income Statement |
| Statement of | ||||||||||||
|
|
| Assets | = | Liab. | + | Stockholders Equity |
| Revenue | - | Expense | = | Net Inc. |
| Cash Flows | ||||
| Event No. |
|
Cash |
+ |
Land |
= | Notes Payable |
+ | Common Stock |
+ | Retained Earnings |
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| 1 |
| 30,000 | + | NA | = | NA | + | 30,000 | + | NA |
| NA | - | NA | = | NA |
| 30,000 FA |
| 2 |
|
| + |
| = |
| + |
| + |
|
|
| - |
| = |
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| 3 |
|
| + |
| = |
| + |
| + |
|
|
| - |
| = |
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| 4 |
|
| + |
| = |
| + |
| + |
|
|
| - |
| = |
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| 5. |
|
| + |
| = |
| + |
| + |
|
|
| - |
| = |
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|
| 6. |
|
| + |
| = |
| + |
| + |
|
|
| - |
| = |
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| 7. |
|
| + |
| = |
| + |
| + |
|
|
| - |
| = |
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| 8. |
|
| + |
| = |
| + |
| + |
|
|
| - |
| = |
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| Total |
| $ | + | $ | = | $ | + | $ | + | $ |
| $ | - | $ |
| $ |
| $ |
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e.
| Operating Activities: | |
| Cash from revenue | $ |
| Cash paid for expenses |
|
| Net Cash Flow from Operating Activities | $ |
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| Investing Activities: | |
|
| $ |
| Net Cash Flow from Investing Activities | $ |
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| Financing Activities: | |
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| $ |
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| Net Cash Flow from Financing Activities | $ |
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|
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