Record the preceding transactions in the horizontal statements model.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter22: End-of-fiscal-period Work For A Corporation
Section: Chapter Questions
Problem 3AP
Related questions
Question
![Required Information
[The following information applies to the questions displayed below]
1.
Maben Company was started on January 1. Year 1, and experienced the following events during its first year of
1. Acquired $37,000 cash from the issue of common stock.
2. Borrowed $33,000 cash from National Bank.
3. Earned cash revenues of $55,000 for performing services.
Required
a. Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the
operating activities (OA), Investing activities (IA), or financing activities (FA). If the element is not affected by the ev
blank. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with
Not all cells require entry.)
2.
3
4.
5
6.
7.
8.
9.
Totall
4. Pald cash expenses of $48.500.
5. Pald a $1,700 cash dividend to the stockholders.
6. Acquired an additional $27,000 cash from the issue of common stock.
7. Pald $8,000 cash to reduce the principal balance of the bank note.
8. Pald $60,000 cash to purchase land.
9. Determined that the market value of the land is $84.000.
Event
No.
Assets
Cash + Land
37,000+
33,000 +
55.000 +
(48,500) +
(1.700) +
27,000 +
(8,000) +
160.000) +
#
33.800 +
Balance Sheet
= Liabilities +
Notes
Payable
P
F
#
B
pake
P
80,000 =
MABEN COMPANY
Horizontal Statements Model for Year 1
60,000 =
+
H
33,000 +
#4
+
+
+
(8.000) +
14
+++
Stockholders' Equity
Common
Stock
37.000 +
+
16
#
27.000 +
H
+
TALK
+
25,000 + 64.000 +
Retained Revenue - Expense =
Earnings
(48.500)
(1.700)
Income Statement
(50,200)
55.000
55.000
#
48.500
#
B
48.500 =
HE
F
#
W
Net
Income
Statement of Cash
Flows
3.7.000
0 37.000
4486111<
FA
FA
OA
DA
FA
FA
FA
IA](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc920b97c-87aa-46c0-8bc0-31ebf3a1b2d8%2F5ec56024-bc6f-4ae1-95e9-81f47e44dc03%2Fb1qacah_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below]
1.
Maben Company was started on January 1. Year 1, and experienced the following events during its first year of
1. Acquired $37,000 cash from the issue of common stock.
2. Borrowed $33,000 cash from National Bank.
3. Earned cash revenues of $55,000 for performing services.
Required
a. Record the preceding transactions in the horizontal statements model. Also, in the Cash Flows column, classify the
operating activities (OA), Investing activities (IA), or financing activities (FA). If the element is not affected by the ev
blank. The first event is shown as an example. (Enter any decreases to account balances and cash outflows with
Not all cells require entry.)
2.
3
4.
5
6.
7.
8.
9.
Totall
4. Pald cash expenses of $48.500.
5. Pald a $1,700 cash dividend to the stockholders.
6. Acquired an additional $27,000 cash from the issue of common stock.
7. Pald $8,000 cash to reduce the principal balance of the bank note.
8. Pald $60,000 cash to purchase land.
9. Determined that the market value of the land is $84.000.
Event
No.
Assets
Cash + Land
37,000+
33,000 +
55.000 +
(48,500) +
(1.700) +
27,000 +
(8,000) +
160.000) +
#
33.800 +
Balance Sheet
= Liabilities +
Notes
Payable
P
F
#
B
pake
P
80,000 =
MABEN COMPANY
Horizontal Statements Model for Year 1
60,000 =
+
H
33,000 +
#4
+
+
+
(8.000) +
14
+++
Stockholders' Equity
Common
Stock
37.000 +
+
16
#
27.000 +
H
+
TALK
+
25,000 + 64.000 +
Retained Revenue - Expense =
Earnings
(48.500)
(1.700)
Income Statement
(50,200)
55.000
55.000
#
48.500
#
B
48.500 =
HE
F
#
W
Net
Income
Statement of Cash
Flows
3.7.000
0 37.000
4486111<
FA
FA
OA
DA
FA
FA
FA
IA
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