Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $23,900 of services on account, and (2) he purchased $4,000 of supplies on account. There were $850 of supplies on hand as of December 31, Year 1.

Required a. b. & e. Record the two transactions in the T-accounts. Record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. Post the entries in the T-accounts and prepare a post-closing trial balance. (Select "a1, a2, or b" for the transactions in the order they take place. Select "cl" for closing entries. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

	Accounts Receivable Supplies Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Accounts Payable Retained Earnings Beg. Bal. Beg. Bal. End. Bal. End. Bal. 0 Service Revenue Supplies Expense Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0

Note: Enter debits before credits.

	Date General Journal Debit Credit Dec 31

c. Show the above transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity and NC for net change in cash. Not all cells require input.)

	CHASE ARCHITECTURAL SERVICES Effect of Transactions on the Financial Statements for Year 1 No. Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders' Equity Accounts Receivable + Supplies = Accounts Payable + Common Stock + Retained Earnings Revenue Expense = Net Income a1. + = + + = a2. + = + + = b. + = + + = Bal. 0 + 0 = 0 + 0 + 0 0 0 = 0 0