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

1. Began operations by acquiring $21,000 of cash from the issue of common stock.
2. Performed services and collected cash of $900.
3. Collected $4,900 of cash in advance for services to be provided over the next 12 months.
4. Provided $12,100 of services on account.
5. Purchased supplies of $490 on account.

Asset Exchange Transactions

6. Purchased $4,900 of land for cash.
7. Collected $7,900 of cash from accounts receivable.
8. Purchased $540 of supplies with cash.
9. Paid $3,200 for one years rent in advance.

Asset Use Transactions

10. Paid $2,500 cash for salaries of employees.
11. Paid a cash dividend of $2,200 to the stockholders.
12. Paid off $490 of the accounts payable with cash.

Claims Exchange Transactions

13. Placed an advertisement in the local newspaper for $180 on account.
14. Incurred utility expense of $75 on account.

Adjusting Entries

15. Recognized $3,675 of revenue for performing services. The collection of cash for these services occurred in a prior transaction. (See Event 3.)
16. Recorded $1,280 of accrued salary expense at the end of Year 1.
17. Recorded supplies expense. Had $85 of supplies on hand at the end of the accounting period.
18. Recognized three months of expense for prepaid rent that had been used up during the accounting period.

b. Prepare a before-closing trial balance.

MARYS DESIGNS
Before-Closing Trial Balance
December 31, Year 1
Account Titles	Debit	Credit
Total	$0	$0