Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $32,000 cash from the issue of common stock. 2. Borrowed $44,000 cash from National Bank. 3. Earned cash revenues of $60,000 for performing services. 4. Paid cash expenses of $51,000. 5. Paid a $2,200 cash dividend to the stockholders. 6. Acquired an additional $32,000 cash from the issue of common stock. 7. Paid $11,000 cash to reduce the principal balance of the bank note. 8. Paid $49,000 cash to purchase land. 9. Determined that the market value of the land is $69,000. 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). 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.) Event No. Assets Cash Land 1. 32,000 + 2. 44,000+ 3. 60,000+ 4. (51,000) + MABEN COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement = = Liabilities + Notes Payable 44,000+ 51,000 + + Stockholders' Equity Common Stock Revenue Retained Earnings Expense Net Income Statement of Cash Flows + 32,000 + II 32,000 FA + 44,000 = + 60,000 51,000 56 5. (2,200) 6. 32,000+ 7. (11,000) + 11,000 8. (49,000) + 49,000 = 9. Total 54,800+ 49,000 106,000 ++ + ++ 2,200 32,000 + +++ 66,200+ 0 60,000 95,000 0 32,000