112. Record each of the following events in the horizontal statements model. After each event, record the corresponding December 31 end-of-year adjustment that would be necessary. Precede the amount...

112. Record each of the following events in the horizontal statements model. After each event, record the corresponding December 31
end-of-year adjustment
that would be necessary. Precede the amount with a minus sign if the transaction reduces that section of the equation. Precede a cash outflow amount with a minus sign. Enter 0 for items not affected.

a) Paid $36,000 for a 1-year lease beginning April 1.
b) Paid $3,000 to purchase supplies. At year end, $1,080 of supplies remained.
c) Received a $48,000 cash advance for a 6-month contract beginning on Sept. 1.

Topic AreaAccounting for prepaid items