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Asset Source Transactions

Began operations by acquiring $$21,000$ of cash from the issue of common stock.

Performed services and collected cash of $$1,150.$

$15$ points

Collected $$4,500$ of cash in advance for services to be provided over the next $12$ months.

Provided $$12,400$ of services on account.

Purchased supplies of $$410$ on account.

Asset Exchange Transactions

Purchased $$4,700$ of land for cash.

Collected $$8,900$ of cash from accounts receivable.

Purchased $$470$ of supplies with cash.

Paid $$3,800$ for one year's rent in advance.

Asset Use Transactions

Paid $$3,400$ cash for salaries of employees.

Paid a cash dividend of $$1,900$ to the stockholders.

Paid off $$410$ of the accounts payable with cash.

Claims Exchange Transactions

Placed an advertisement in the local newspaper for $$110$ on account.

Incurred utility expense of $$110$ on account.

Adjusting Entries

Recognized $$3,375$ of revenue for performing services. The collection of cash for these services occurred in a prior transaction. $($See Event $3.)$

Recorded $$970$ of accrued salary expense at the end of Year $1.$

Recorded supplies expense. Had $$135$ of supplies on hand at the end of the accounting period.

Recognized three months of expense for prepaid rent that had been used up during the accounting period.

Required

a$.$ Record each of the preceding events in T$-$accounts.

B$.$ Prepare a before$-$closing trial balance

C$.$ Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows.

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