Ollie Company experienced the following events during its first-year operations. 1. Acquired $72,000 cash from the issue of common stock. 2. Borrowed $26,000 from the First City Bank. 3. Earned $59,000 of cash revenue. 4. Incurred $43,000 of cash expenses. 5. Paid a $7,000 cash dividend. 6. Paid $43,000 to purchase land. Required a. Identify the events that will affect the income statement. (Select all that apply.) Event #1 Event #2 Event #3 Event #4 Event #5 Event #6 2 b. Prepare an income statement that shows the results of Year 1 operations. OLLIE COMPANY Income Statement For the Year Ended December 31, Year 1 Required a. Identify the events that will affect the income statement. (Select all that apply.) Event #1 Event #2 Event #3 Event #4 Event #5 Event #6 b. Prepare an income statement that shows the results of Year 1 operations. OLLIE COMPANY Income Statement For the Year Ended December 31, Year 1 c. What account on the left side of the accounting equation increased when the revenue account increased? Land O Cash dividend Cash Common stock