Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $35,000 cash from the issue of common stock. 2. Borrowed $35,000 cash from National Bank. 3. Earned cash revenues of $53,000 for performing services. 4. Paid cash expenses of $47,500. 5. Paid a $1,500 cash dividend to the stockholders. 6. Acquired an additional $25,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $58,000 cash to purchase land. 9. Determined that the market value of the land is $81,000. MABEN COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Event No. Assets = Liabilities + Notes + Payable Statement of Cash Flows Revenue Expense Net Income Cash + Stockholders' Equity Common Retained Stock Earnings 35,000 + Land + 1. 35,000 + = + 35,000 FA 2. + 3. = + 4. = + + 5. 6. + + + + + + + + + + = + + + + + + + + + + + + 7. = 8. = 9. = + + + = Total 35,000 + 0 = 0+ 35,000 + 0 0 0 = 0 35,000