During Year 1, Pace Company issued common stock to stockholders for $12,000, purchased land for $3,200 cash, and paid cash dividends of $1,000 to the company's owners. Required:Enter each of these three events into the horizontal financial statements model, below. Indicate dollar amounts of increases and decreases. For cash flows, show whether they are operating activities (OA), investing activities (IA), or financing activities (FA). Enter 0 if there would be no entry in a column.EventAssets=Liab.+EquityRev.-Exp.=Net Inc.Stmt of Cash Flowsa)???????????b)???????????c)???????????
What will be an ideal response?
| Event | Assets | = | Liab. | + | Equity | Rev. | - | Exp. | = | Net Inc. | Stmt of Cash Flows |
| a) | 12,000 | ? | 0 | ? | 12,000 | 0 | ? | 0 | ? | 0 | 12,000 FA |
| b) | (3,200) | ? | 0 | ? | 0 | 0 | ? | 0 | ? | 0 | (3,200) IA |
| ? | 3,200 | ? | 0 | ? | 0 | 0 | ? | 0 | ? | 0 | 0 |
| c) | (1,000) | ? | 0 | ? | (1,000) | 0 | ? | 0 | ? | 0 | (1,000) FA |
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