Required:

Show the effect of each of the following independent accounting events on the financial statements using a horizontal

statements model. Indicate whether the event increases, decreases, or increases and decreases each element of the financial

statements. In the Statement of Cash Flows column, designate the cash flows as operating activities $($OA$),$ investing activities $($IA$),$

or financing activities $($FA$).$ If an element is not affected by the event, leave the cell blank. The first event is recorded as an

example.

a$.$ Issued a bond at face value.

b$.$ Borrowed funds using a line of credit.

c$.$ Made an interest payment for funds that had been borrowed against a line of credit.

d$.$ Made a cash payment on a note payable for both interest and principal.

e$.$ Made an interest payment on a bond that had been issued at face value.

Note: Leave cells blank if no input is needed.

Effect of Transactions on Financial Statements

Note: Leave cells blank if no input is needed.

$,$ input is needed.