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Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [The following information applies to the questions displayed below.]

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Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowd $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part a Required: a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of a cosh flows. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. The first event is recorded as an example. Note: Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed. cash flows. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. The first event is recorded as an example. Note: Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed. Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowed $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part b b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet. Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowed $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part c c. Identify the asset source transactions and related amounts for Year 1. Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowd $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part d d-1. Determine the net income that Maben would report on the Year 1 income statement. Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowed $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part e Determine the net cash flows from operating activities, investing activities, and financing activities that Maben would report on the lear 1 statement of cash flows. Note: Enter cash outflows as negative amounts. Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowed $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cah expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part f f. Determine the percentage of assets that were provided by investors, creditors, and earnings, Note: Round your answers to 2 decimal places. Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowd $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part a Required: a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of a cosh flows. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. The first event is recorded as an example. Note: Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed. cash flows. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, and FA for financing activity. The first event is recorded as an example. Note: Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed. Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowed $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part b b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet. Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowed $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part c c. Identify the asset source transactions and related amounts for Year 1. Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowd $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part d d-1. Determine the net income that Maben would report on the Year 1 income statement. Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowed $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cash expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part e Determine the net cash flows from operating activities, investing activities, and financing activities that Maben would report on the lear 1 statement of cash flows. Note: Enter cash outflows as negative amounts. Required information Problem 2-20A (Algo) Showing how events affect the horizontal financial statements model LO 2-1 [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 $36,000 cash from the issue of common stock. 2. Borrowed $34,000 cash from National Bank. 3. Earned cash revenues of $54,000 for performing services. 4. Paid cah expenses of $48,000. 5. Paid a $1,600 cash dividend to the stockholders. 6. Acquired an additional $26,000 cash from the issue of common stock. 7. Paid $9,000 cash to reduce the principal balance of the bank note. 8. Paid $59,000 cash to purchase land. 9. Determined that the market value of the land is $83,000. Problem 2-20A (Algo) Part f f. Determine the percentage of assets that were provided by investors, creditors, and earnings, Note: Round your answers to 2 decimal places

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