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

Acquired $60,000 cash from the issuance of common stock.

Purchased $1,200 of supplies on account (that is, purchased supplies on credit).

Paid $800 cash towards the accounts payable in transaction 2.

Recognized revenue on account (that is, made sales on credit) of $42,000.

Paid $21,000 for other operating expenses.

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

Paid $3,200 cash to settle the salaries payable obligation.

Paid $3,600 cash in advance to lease office space.

Purchased $1,000 of supplies on account (that is, on credit).

Provided services on account (that is, on credit) of $32,000.

Collected $33,000 cash from accounts receivable.

Paid a cash dividend of $5,000 to the shareholders.

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 3).

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 using Microsoft Excel

Template:

2016
Transaction	Cash	Accounts Receivable	Prepaid Rent	Supplies	=	Accounts Payable	Salaries Payable	Unearned Revenue	Common Stock	Retained Earnings	Dividends	Cash Flow
1	60000								60000			FA
2
3
4
5
6
7
8
	60000	0	0	0		0	0	0	60000	0	0
				Assets	60000		Liabilities+SE	60000
Transaction	Revenue	Salaries Expense	Supplies Expense	Rent Expense	Other Operating Expenses		Net Income
1
2
3
4
5
6
7
8
	0	0	0	0	0		0