The following events occurred during a company's first year of operations, which ended on December 31:a)On April 1, paid $36,000 for to lease office space for one year beginning immediately.b)On February 1, paid $3,000 to purchase supplies; a physical count revealed $1,080 of supplies on hand on December 31.c)On September 1, received $48,000 cash in advance for services to be performed over a six-month period beginning immediately.Required:For each event:1)Show how the events affect each of the company's accounts using the horizontal statements model. In the last column, enter OA, IA, or FA for the type of cash flow activity, if applicable.2)In the row that follows, show how the corresponding adjustment, required as of December 31, affects each of the company's accounts.

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The Answer of The following events occurred during a company's first year of operations, which ended on December 31:a)On April 1, paid $36,000 for to lease office space for one year beginning immediately.b)On February 1, paid $3,000 to purchase supplies; a physical count revealed $1,080 of supplies on hand on December 31.c)On September 1, received $48,000 cash in advance for services to be performed over a six-month period beginning immediately.Required:For each event:1)Show how the events affect each of the company's accounts using the horizontal statements model. In the last column, enter OA, IA, or FA for the type of cash flow activity, if applicable.2)In the row that follows, show how the corresponding adjustment, required as of December 31, affects each of the company's accounts.

The Following Events Occurred During a Company's First Year of Operations