The following accounting events apply to Mary's Designs for Year 1: Asset Source Transactions 1. Began operations by acquiring $20,000 of cash from the issue of common stock. 2. Performed services and collected cash of $1,400. 3. Collected $4,550 of cash in advance for services to be provided over the next 12 months. 4. Provided $13,400 of services on account. 5. Purchased supplies of $360 on account. Asset Exchange Transactions 6. Purchased $4,800 of land for cash. 7. Collected $8,900 of cash from accounts receivable. 8. Purchased $600 of supplies with cash. 9. Paid $3,900 for one year's rent in advance. Asset Use Transactions 10. Paid $3,000 cash for salaries of employees. 11. Paid a cash dividend of $1,900 to the stockholders. 12. Paid off $360 of the accounts payable with cash. Claims Exchange Transactions 13. Placed an advertisement in the local newspaper for $110 on account. 14. Incurred utility expense of $100 on account. Adjusting Entries 15. Recognized $3,413 of revenue for performing services. The collection of cash for these services occurred in a prior transaction. (See Event 3.) 16. Recorded $1,340 of accrued salaries expense at the end of Year 1. 17. Recorded supplies expense. Had $90 of supplies on hand at the end of the accounting period. 18. 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

Asset Source Transoctions 1. Began operations by acquiring $20,000 of cash from the issue of common stock. 2 Performed services and collected cash of $1,400 3. Collected 54,550 of cash in-advance for services to be provided over the next 12 months 4. Provided $13,400 of services on account 5. Purchased supplies of $360 an account Asser Exchonge Tronsactions 6. Purchased $4,800 of land for cash. 7. Collected $8,900 of cash from accounts receivabie 8. Purchased $600 of supplies with cast. 9. Paid $3,900 for one year's rent in advance Asser Use Trensections 10. Paid $3,000 cash for salanes of employees. 11. Paid a cash dividend of $1900 to the stockholders. 12. Paid off $360 of the accounts payable with cash. Claims Exchenge Trensections 13. Placed an advertisement in the local newspaper for $110 on account. 14. Incurted utility expense of $100 on account. Adjusting Entries 15. Aecognized $3,413 of revenue for performing services The collection of cash for these services occurred in a prior transaction isee Fventa) 16. Reconded $1,340 of accrued salaries expense at the end of Year 1. 17. Recorded sipplies experise. Had $90 of supplies on hand at the end of the accounting period 18. Aecognized four months of expense for prepaid tent that had been used up during the accounting period Required a. Record each of the preceding events in raccounts b. Prepare an adjusted tral balance c. Use a borzontal statements model to show how each event aflects the balance sheet, income statement, and statement of cash. fows. The first event is iecorded as an example