Required information Problem 1-34A (Algo) Show how events affect the horizontal statements model LO 1-5, 1-6, 1-7, 1-8, 1-9, 1- 10 [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 operation: 1. Acquired $34,000 cash from the issue of common stock. 2. Borrowed $35,000 cash from National Bank. 3. Earned cash revenues of $52,000 for performing services. 4. Pald cash expenses of $47,000. 5. Paid a $1,400 cash dividend to the stockholders. 6. Acquired an additional $24,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $57,000 cash to purchase land. 9. Determined that the market value of the land is $80,000. Problem 1-34A (Algo) Part a 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 require entry.) Answer is not complete. MABEN COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement Event No, Assets = Liabilities Stockholders' Equity Notes Cash + Land A + Payable Common Stock Retained Revenue Expense Net Income Statement of Cash Flows + Earnings + 1 34,000 + 34,000 34,000 FA 2 36,000+ 36,000+ + 36,000 FA 3 52,000+ 4. (47.000)+ M N + 52.000 52,000 52,000 OA + (47,000) 47,000 (47,000) (47,000) OA O 569 (1,400)+ + + (1,400) (1,400) FA 6. 24,000 + 24,000 24,000 FA 7 (9,000) + = (9,000) + (9,000) FA + 8 (57,000) + 57,000- . + (57.000) IA 0000000 9 x + Total 31,600 57,000 27,000 + 58,000 3,000 0 47,000 5,000 31,600