The following accounting events apply to Mary€™s Designs for the year 2016:
Asset Source Transactions
1. Began operations by acquiring $90,000 of cash from the issue of common stock.
2. Performed services and collected cash of $9,000.
3. Collected $36,000 of cash in advance for services to be provided over the next 12 months.
4. Provided $58,000 of services on account.
5. Purchased supplies of $5,200 on account.
Asset Exchange Transactions
6. Purchased $21,000 of land for cash.
7. Collected $49,000 of cash from accounts receivable.
8. Purchased $3,150 of supplies with cash.
9. Paid $12,000 for one year€™s rent in advance.
Asset Use Transactions
10. Paid $24,000 cash for salaries of employees.
11. Paid a cash dividend of $5,000 to the stockholders.
12. Paid off $3,600 of the accounts payable with cash.
Claims Exchange Transactions
13. Placed an advertisement in the local newspaper for $2,600 on account.
14. Incurred utility expense of $1,800 on account.
Adjusting Entries
15. Recognized $12,000 of revenue for performing services. The collection of cash for these services occurred in a prior transaction. (See Event 3)
16. Recorded $8,000 of accrued salary expense at the end of 2016.
17. Recorded supplies expense. Had $1,900 of supplies on hand at the end of the accounting period.
18. Recognized four months of expense for prepaid rent that had been used up during the accounting period.
19. Recognized $500 of accrued interest revenue.
Required
a. Record each of the preceding events in T-accounts.
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 (-), 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 an example.

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