The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital improvements occur on January 1 each year.

2018

1. Acquired $80,000 cash from the issue of common stock.

2. Purchased a computer system for $35,000. It has an estimated useful life of five years and a $5,000 salvage value.

3. Paid $2,450 sales tax on the computer system.

4. Collected $65,000 in fees from clients.

5. Paid $1,500 in fees for routine maintenance to service the computers.

6. Recorded double-declining-balance depreciation on the computer system for 2018.

2019

1. Paid $1,000 for repairs to the computer system.

2. Bought off-site backup services to maintain the computer system, $1,500.

3. Collected $68,000 in fees from clients.

4. Paid $1,500 in fees to service the computers.

5. Recorded double-declining-balance depreciation for 2019.

2020

1. Paid $6,000 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did not change.

2. Paid $1,200 in fees to service the computers.

3. Collected $70,000 in fees from clients.

4. Recorded double-declining-balance depreciation for 2020.

Required

a. Record the previous transactions in a horizontal statements model like the following one.

b. Use a vertical model to present financial statements for 2018, 2019, and 2020.

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Balance Sheet Income Statement Statemt. of Rev. - Exp. = Net Inc. Cash Flow Event Assets Equity Ret Cash + Equip. _ A, Dep. = Stock + Earn. Com.