Practice help, please. The following accounting events apply to Mary's Designs for Year 1:Asset Source Transactions1. Began operations by acquiring $16,000 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 $12,200 of services on account.5. Purchased supplies of $470 on account.Asset Exchange Transactions6. Purchased $4,200 of land for cash.7. Collected $7100 of cash from accounts receivable.8. Purchased $420 of supplies with cash.9. Paid $3,700 for one year's rent in advance.Asset Use Transactions10. Paid $2,800 cash for salaries of employees.11. Paid a cash dividend of $1,900 to the stockholders.12. Paid off $470 of the accounts payable with cash.Claims Exchange Transactions13. Placed an advertisement in the local newspaper for $150 on account.14. Incurred utility expense of $115 on account.Adjusting Entries15. 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 $1,480 of accrued salary 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 three months of expense for prepaid rent that had been used up during the accounting period. b. Prepare a before-closing trial balance.MARY'S DESIGNSBefore-Closing Trial BalanceDecember 31, Year 1Account TitlesDebitCreditTotal0 $

Workings: (1.) Cash = 16,000 + 900 + 4,900 - 4,200 + 7,100 - 420 - 3,700 - 2,800 - 1,900 - 470 =…

Answered: b. Prepare a before-closing trial…

b. Prepare a before-closing trial balance. MARY'S DESIGNS Before-Closing Trial Balance December 31, Year 1 Account Titles Debit Credit

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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