Problem 13-28A (Algo) Showing events in a statements model, recording them in T-accounts, and preparing a trial balance LO 13-1, 13-3

The following accounting events apply to Marys Designs for Year 1: Asset Source Transactions

1. Began operations by acquiring $25,000 of cash from the issue of common stock.
2. Performed services and collected cash of $750.
3. Collected $4,550 of cash in advance for services to be provided over the next 12 months.
4. Provided $11,700 of services on account.
5. Purchased supplies of $410 on account.

Asset Exchange Transactions

1. Purchased $4,300 of land for cash.
2. Collected $7,400 of cash from accounts receivable.
3. Purchased $490 of supplies with cash.
4. Paid $4,000 for one years rent in advance.

Asset Use Transactions

1. Paid $2,600 cash for salaries of employees.
2. Paid a cash dividend of $2,100 to the stockholders.
3. Paid off $410 of the accounts payable with cash.

Claims Exchange Transactions

1. Placed an advertisement in the local newspaper for $170 on account.
2. Incurred utility expense of $125 on account.

Adjusting Entries

1. Recognized $3,413 of revenue for performing services. The collection of cash for these services occurred in a prior transaction. (See Event 3.)
2. Recorded $1,260 of accrued salary expense at the end of Year 1.
3. Recorded supplies expense. Had $140 of supplies on hand at the end of the accounting period.
4. 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.