The following accounting events apply to Mary's Designs for Year 1: Asset Source Transactions 1. 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 Transactions 6. Purchased $4,200 of land for cash. 7. Collected $7,100 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 Transactions 10. 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 Transactions 13. Placed an advertisement in the local newspaper for $150 on account. 14. Incurred utility expense of $115 on account. Adjusting Entries 15. 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.

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