15 4 points eBook Print References Asset Source Transactions 1. Began operations by acquiring $21,000 of cash from the issue of common stock. 2. Performed services and collected cash of $1,150. 3. Collected $4,500 of cash in advance for services to be provided over the next 12 months. 4. Provided $12,400 of services on account. 5. Purchased supplies of $410 on account. Asset Exchange Transactions 6. Purchased $4,700 of land for cash. 7. Collected $8,900 of cash from accounts receivable. 8. Purchased $470 of supplies with cash. 9. Paid $3,800 for one year's rent in advance. Asset Use Transactions 10. Paid $3,400 cash for salaries of employees. 11. Paid a cash dividend of $1,900 to the stockholders. 12. Paid off $410 of the accounts payable with cash. Claims Exchange Transactions 13. Placed an advertisement in the local newspaper for $110 on account. 14. Incurred utility expense of $110 on account. Adjusting Entries 15. Recognized $3,375 of revenue for performing services. The collection of cash for these services occurred in a prior transaction. (See Event 3.) 16. Recorded $970 of accrued salary expense at the end of Year 1. 17. Recorded supplies expense. Had $135 of supplies on hand at the end of the accounting period. 18. 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.