Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:

1. Acquired $31,000 cash from the issue of common stock.
2. Borrowed $39,000 cash from National Bank.
3. Earned cash revenues of $49,000 for performing services.
4. Paid cash expenses of $45,500.
5. Paid a $1,100 cash dividend to the stockholders.
6. Acquired an additional $21,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $54,000 cash to purchase land.
9. Determined that the market value of the land is $76,000.

a. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Also, in the Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA), net change in cash (NC) and NA to indicate the element is not affected by the event. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)

b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet.

Event No. MABEN COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement = Liabilities + Stockholders' Equity Net Notes Common Retained Revenue Expense = Income Payable Stock Earnings 31,000 + Assets Statement of Cash Flows Cash + Land II + 31,000 + + 31,000 FA 1. 2. ++ 3. +++ + + + 4. 5. + 6. 7. 8. 9. Total 31,000+ 0 = 01+ 31,000+ 0 0 0= 0 31,000 Total assets