Iowa Service Company was formed on January 1, 2016 and the following transactions occurred in 2016:

1. Acquired $60,000 cash from the issuance of common stock.
2. Purchased $1,200 of supplies on account (that is, purchased supplies on credit).
3. Paid $800 cash towards the accounts payable in transaction 2.
4. Recognized revenue on account (that is, made sales on credit) of $42,000.
5. Paid $21,000 for other operating expenses.
6. Collected $38,000 cash from accounts receivable.

Adjusting entries in 2016

7. Recognized accrued salaries of $3,200 as of December 31, 2016.

8.Had $200 of supplies on hand as of December 31, 2016.

Transactions in 2017

1. Paid $3,200 cash to settle the salaries payable obligation.
2. Paid $3,600 cash in advance to lease office space.
3. Purchased $1,000 of supplies on account (that is, on credit).
4. Provided services on account (that is, on credit) of $32,000.
5. Collected $33,000 cash from accounts receivable.
6. Paid a cash dividend of $5,000 to the shareholders.
7. Paid other operating expenses of $19,500.

Adjusting entries in 2017

8. The advanced payment for rental of the office space was made on March 1 for a 12-month term (Event 2).

9. Had $300 of supplies on hand as of December 31, 2017.

Record each transaction and adjusting entries for the two years in a horizontal statements model