Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Veek 1 Seved Help Save & E Required information (The following information applies to the questions displayed below.) Maben Company was started on January 1,

image text in transcribed
image text in transcribed
Veek 1 Seved Help Save & E 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 operation: 1. Acquired $35,000 cash from the issue of common stock. 2. Borrowed $47,000 cash from National Bank. 3. Earned cash revenues of $63,000 for performing services. 4. Paid cash expenses of $52,500. 5. Paid a $2,500 cash dividend to the stockholders. 6. Acquired an additional $35,000 cash from the issue of common stock. 7. Paid $12,000 cash to reduce the principal balance of the bank note. 8. Paid $46,000 cash to purchase land. 9. Determined that the market value of the land is $64,000. 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), financing activities (FA), or net change in cash (NC). If the element is not affected by 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), financing activities (FA), or net change in cash (NC). 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.) Event No. Assets MABEN COMPANY Horizontal Statements Model for Year 1 Balance Sheet Income Statement - Liabilities - Stockholders' Equity Net Notes Common Retained Revenue - Expense Income Payable Stock Earnings 35,000 Cash Land Statement of Cash Flows 1. 35,000+ + 2. + + 35,000 FA 4 + 5 + 6 7. + 8 + 9. Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: William C. Boynton, Walter G. Kell

6th Edition

0471596876, 9780471596875

More Books

Students also viewed these Accounting questions