Versa Training Services provides instruction on how to pass the CPA examination. Versa has attained phenomenal growth by offering its customers a moneyback guarantee. Any student who attends all classes and completes all homework assignments is entitled to a complete refund if he or she fails to pass the exam. The following events pertain to a new course that was recently established by Versa. 1. During 2016, Versa charged a total of 40 students $400 each for the training. Versa only accepts cash payment for training. 2. Versa estimates that 10 percent of the students will attend all the classes, complete all the homework assignments, and yet fail the exam and demand a cash refund. 3. During 2016, only 1 customer presented his exam results to Versa and requested a cash refund. Versa paid a $400 cash refund to a customer after he received his exam results. This refund was the first of several Versa expected to grant to unsuccessful candidates. 1. Record the events in T-accounts, including closing the revenue and expense accounts to retained earnings 2. Record the events using the horizontal financial statements model under the titles of the affected accounts. Record a zero under each heading not affected by the event. Compare the final balances in the T-accounts from part a. with the ending balances in the horizontal financial statements model