Iowa Service Company was formed on January 1, 20X0 and the following transactions occurred in 20X0:

1. Acquired $60,000 cash from the issuance of common stock.
2. Purchased $1,200 of supplies on account.
3. Paid $800 cash towards the accounts payable in no. 2.
4. Recognized revenue on account of $42,000.
5. Paid $21,000 for other operating expenses.
6. Collected $38,000 cash from accounts receivable.

Adjusting entries in 20X0

1. Recognized accrued salaries of $3,200 as of December 31, 20X0.
2. Had $200 of supplies on hand as of December 31, 20X0.

Transactions in 20X1

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.
4. Provided services on account 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 20X1

8. The advanced payment for rental of the office space was made on March 1 for an one year term (Event 3).

9. Had $300 of supplies on hand as of December 31, 20X1.

Record each transaction and adjusting entries for the two years in a horizontal statements model using the following Excel template:Unit 2 Template

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