Answer:
I prepared the horizontal statement on an excel spreadsheet because there was not enough room here.
Explanation:
a) Accepted $36,000 on April 1, Year 1, as a retainer for services to be performed evenly over the next 12 months.
Dr Cash 36,000
  Cr Unearned revenue 36,000
b) Performed legal services for cash of $54,000.
Dr Cash 54,000
  Cr Fees earned 54,000
c) Purchased $2,800 of office supplies on account.
Dr Supplies 2,800
  Cr Accounts payable 2,800
d) Paid $2,400 of the amount due on accounts payable.
Dr Accounts payable 2,400
  Cr Cash 2,400
e) Paid a cash dividend to the stockholders of $5,000.
Dr Dividend 5,000
  Cr Cash 5,000
f) Paid cash for operating expenses of $31,000.
Dr Operating expenses 31,000
  Cr Cash 31,000
g) Determined that at the end of the accounting period $200 of office supplies remained on hand.
Dr Supplies expense 2,600
  Cr Supplies 2,600
h) On December 31, Year 1, recognized the revenue that had been earned for services performed in accordance with Transaction 1.
Dr Unearned revenue 36,000
  Cr Fees earned 36,000
