Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $33,000 cash from the issue of common stock. 2. Borrowed $37,000 cash from National Bank. 3. Earned cash revenues of $51,000 for performing services. 4. Paid cash expenses of $46,500. 5. Paid a $1,300 cash dividend to the stockholders. 6. Acquired an additional $23,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $56,000 cash to purchase land. 9. Determined that the market value of the land is $78,000. 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.) MABEN COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Event Assets =Liabilities + Stockholders' Equity No. Statement of Cash Flows Cash + Land Notes Payable Common Retained Revenue Expense Stock Earnings 1. 33,000+ 33,000+ 33,000 FA 2. + 33,000 3. 4 5. 6. 7 B 9. Total 33,000+ m W W M M = + + 01. 33,000 + + 0 W - 0= Net Income 0 ! Required information [The following information applies to the questions displayed below.] Maben Company was started on January 1, Year 1, and experienced the following events during its first year of ope 1. Acquired $33,000 cash from the issue of common stock. 2. Borrowed $37,000 cash from National Bank. 3. Earned cash revenues of $51,000 for performing services. 4. Paid cash expenses of $46,500. 5. Paid a $1,300 cash dividend to the stockholders. 6. Acquired an additional $23,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $56,000 cash to purchase land. 9. Determined that the market value of the land is $78,000. b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet. Total assets c. Identify the asset source transactions and related amounts for Year 1. Sources of Assets Event Amount Total sources of assets $ 0 d-1.Determine the net income that Maben would report on the Year 1 income statement. Net income d-2. Will dividends appear in the income statement? O Yes O No S e. Determine the net cash flows from operating activities, investing activities, and financing activities that Maben would report on the Year 1 statement of cash flows. (Enter cash outflows as negative amounts.) Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities f. Determine the percentage of assets that were provided by investors, creditors, and earnings. (Round your answers to 2 decimal places.) Assets Investors Creditors Earnings % % %
