recorded the event in the accounting equation.

A 2 3 Events: 4 a) Purchased $24,000 of equipment for use in the business, paid cash. 3 b) Earned $160,000 in service revenues for 2020, including $40,000 on credit and $120,000 collected in cash. 16 c) Collected accounts receivable, $24,000. 7 d) Customer paid $12,000 in advance for future services. 3 e) Paid accounts payable, $13,000. f) On July 1, paid $20,000 to rent a building for the rest of 2020 and the first half of 2021. 0 B) Purchased $18,000 supplies on account for future use. 1 h) Declared and paid a $17,000 cash dividend. 2 Information for Adjustments: 3 ) Determined after a year-end count that $20,000 of supplies had been used during the year. 4 i) Depreciation for the year on the equipment, $6,000. 5 k) Accrued $1,000 interest on an outstanding loan (promissory note). 6 ) Building rental expenses for the year, paid in transaction (f), had not yet been recorded. 7 m) Wages of $12,000 earned by employees since the December 24 payroll were not yet paid. 8 n) Vermillion provided $4,000 in service that had been prepaid in transaction (d). 9 ) During December, Vermillion provided $5,000 in service on account 0 p) Income tax for the year was $16,000. It will be paid in 2021. 1 D Assets Labilities Equity Cash Common Eve nt Account Supplies for Cash Prepaid Services Evit Accounts Payable Unearned Revenue Note Payable Categ Deprec Retained Cum Period Faris Dividends) Revenue 8,000 10) 0 Expenses 10) 31,000 5.000 12,000 36,000 0 Beginning 5.000 0 16,000) 15,000 50,000 a = . d . . f Unadsted 1 . . 1 m P 0 O O O 0 0 0 0 0 0 0 Adjusted Closing Period 0 0 0 0 0 0 0 0 0 0 0 0 Check 0 0