Question
Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: Acquired $34,000 cash from the issue
Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation:
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Acquired $34,000 cash from the issue of common stock.
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Borrowed $46,000 cash from National Bank.
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Earned cash revenues of $62,000 for performing services.
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Paid cash expenses of $52,000.
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Paid a $2,400 cash dividend to the stockholders.
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Acquired an additional $34,000 cash from the issue of common stock.
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Paid $12,000 cash to reduce the principal balance of the bank note.
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Paid $47,000 cash to purchase land.
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Determined that the market value of the land is $66,000.
Required
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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), financing activities (FA), or net change in cash (NC). If the element is not affected by the event, leave the cell blank. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.)
| MABEN COMPANY | ||||||||||||||||
| Horizontal Statements Model for 2018 | ||||||||||||||||
| Event No. | Balance Sheet | Income Statement | Statement of Cash Flows | |||||||||||||
| Assets | = | Liabilities | + | Stockholders' Equity | Revenue | Expense | = | Net Income | ||||||||
| Cash | + | Land | = | Notes Payable | + | Common Stock | + | Retained Earnings | ||||||||
| 1. | 34,000 | + | = | + | 34,000 | + | = | 34,000 | FA | |||||||
| 2. | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | not attempted | = | not attempted | not attempted | not attempted | |
| 3. | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | not attempted | = | not attempted | not attempted | not attempted | |
| 4. | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | not attempted | = | not attempted | not attempted | not attempted | |
| 5. | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | not attempted | = | not attempted | not attempted | not attempted | |
| 6. | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | not attempted | = | not attempted | not attempted | not attempted | |
| 7. | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | not attempted | = | not attempted | not attempted | not attempted | |
| 8. | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | not attempted | = | not attempted | not attempted | not attempted | |
| 9. | not attempted | + | not attempted | = | not attempted | + | not attempted | + | not attempted | not attempted | not attempted | = | not attempted | not attempted | not attempted | |
| Total | 34,000 | + | 0 | = | 0 | + | 34,000 | + | 0 | 0 | 0 | = | 0 | 34,000 | ||
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Wiley Federal Government Auditing Laws Regulations Standards Practices And Sarbanes Oxley
Authors: Cornelius E. Tierney, Edward F. Kearney, Roldan Fernandez, Jeffrey W. Green, Kearney & Company
1st Edition
0471740489, 978-0471740483
