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.

. Prepare a before-closing trial balance.