The following accounting events apply to Barnes Co. for the year 2013:
Asset Source Transactions
1. Began operations when the business acquired $40,000 cash from the issue of common stock.
2. Performed services and collected cash of $2,000.
3. Collected $9,000 of cash in advance for services to be provided over the next 12 months.
4. Provided $24,000 of services on account.
5. Purchased supplies of $840 on account.
Asset Exchange Transactions
6. Purchased $8,000 of land for cash.
7. Collected $17,000 of cash from accounts receivable.
8. Purchased $1,000 of supplies with cash.
9. Paid $7,200 in advance for one year€™s rent.
Asset Use Transactions
10. Paid $4,000 cash for salaries of employees.
11. Paid a cash dividend of $4,000 to the stockholders.
12. Paid $840 for supplies that had been purchased on account.
Claims Exchange Transactions
13. Placed an advertisement in the local newspaper for $300 and agreed to pay for the ad later.
14. Incurred utilities expense of $250 on account.
Adjusting Entries
15. Recognized $6,000 of revenue for performing services. The collection of cash for these services occurred in a prior transaction. (See Event 3.)
16. Recorded $1,800 of accrued salary expense at the end of 2013.
17. Recorded supplies expense. Had $240 of supplies on hand at the end of the accounting period.
18. Recognized that three months of prepaid rent had been used up during the accounting period.
19. Recognized $900 of accrued interest revenue.
Required
a. Record each of the preceding transactions in T-accounts and determine the balance of each account.
b. Prepare a before-closing trial balance.
c. Use a horizontal statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. Indicate whether the event increases (+), decreases (ˆ’), or does not affect (NA) each element of the financial statements. Also, in the Cash Flow column, use the letters OA to designate operating activity, IA for investing activity, and FA for financing activity. The first event is recorded as anexample.

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Assets = Liab. + Equity Rev. - Exp. = Net Inc.||| Cash Flow NA NA NA NA 十FA