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

Began operations by acquiring $15,000 of cash from the issue of common stock.

Performed services and collected cash of $500.

Collected $4,200 of cash in advance for services to be provided over the next 12 months.

Provided $10,300 of services on account.

Purchased supplies of $430 on account.

Asset Exchange Transactions

Purchased $4,000 of land for cash.

Collected $8,800 of cash from accounts receivable.

Purchased $450 of supplies with cash.

Paid $3,300 for one years rent in advance.

Asset Use Transactions

Paid $3,200 cash for salaries of employees.

Paid a cash dividend of $1,700 to the stockholders.

Paid off $430 of the accounts payable with cash.

Claims Exchange Transactions

Placed an advertisement in the local newspaper for $190 on account.

Incurred utility expense of $110 on account.

Adjusting Entries

Recognized $3,150 of revenue for performing services. The collection of cash for these services occurred in a prior transaction. (See Event 3.)

Recorded $1,250 of accrued salaries expense at the end of Year 1.

Recorded supplies expense. Had $135 of supplies on hand at the end of the accounting period.

Recognized four 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. b. Prepare an adjusted trial balance. c. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. The first event is recorded as an example.

Record each of the preceding events in T-accounts.