Question

im unsure about my accounting skills

1 Saved Required information [The following information applies to the questions displayed below.] Maben Company was started on January 1, Year 1, and experienced the follo operation: 1. Acquired $29,000 cash from the issue of common stock. 2. Borrowed $41,000 cash from National Bank 3. Earned cash revenues of $57,000 for performing services. 4. Paid cash expenses of $49,500. 5. Paid a $1,900 cash dividend to the stockholders. 6. Acquired an additional $29.000 cash from the issue of common stock 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $52,000 cash to purchase land. 9. Determined that the market value of the land is $73,000. Required Dorthendinnenction in the horizontalentemente model A in the < Prev 3 00 of 8 a W g

Answer 1

we will post the transactions in horizontal model

No.	Cash	Land	Notes payable	Common stock	Retained earnings	Revenue	Expenses	Net income	statement of cash flow
1	$29,000			$29,000					$29,000 FA	Cash recieved so it will increase. Common stock will increase and it is financing activity
2	$41,000		$41,000						$41,000 FA	Cash recieved so it will increase.Note payable issued will increase.cash received by issuing note payable is financing activity.
3	$57,000				$57,000	$57,000		$57,000	$57,000 OA	Revenue will increase net income. It is operating activity
4	($49,500)				($49,500)		$49,500	($49,500)	($49,500) OA	cash paid will decrease cashbalance. expense will affect operating activity
5	($1,900)				($1,900)				($1,900) FA	dividend paid will affect financing activity. Cash paid will reduce cash balance.
6	$29,000			$29,000					$29,000 FA	Cash recieved so it will increase. Common stock will increase and it is financing activity
7	($10,000)		($10,000)						($10,000) FA	it will reduce note payable liability. Cash will reduce.
8	($52,000)	$52,000							($52,000) IA	Land purchased is investing activity. it will increase land and reduce cash.
9	NO ENTRY REQUIRED									Change in market value donot affect any account as there is no transaction involved.
Total	$42,600[$29,000+41,000+57,000-49,500-1,900+29,000-10,000-52,000]	$52,000	$31,000 [41,000-10,000]	$58,000	$5,600	$57,000	$49,500	$7,500	$42,600

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