60.1K

Verified Solution

Link Copied!

Events Affecting the Year 2 Accounting Period 1. Acquired $35,000 cash from the issue of common stock. 2. Paid $4,700 cash to settle the salaries payable obligation. 3. Paid $8,100cash in advance to lease office space. 4. Sold the land that cost $48,000 for $48,000cash. 5. Received $9,300 cash in advance for services to be performed in the future. 6. Purchased $2,500 of supplies on account during the year. 7. Provided services on account of $48,000. 8. Collected $48,000 cash from accbunts receivable. 9. Paid a cash dividend of $7,000 to the stockholders. 10. Paid other operating expenses of $34,500. 6. Purchased $2,500 of supplies on account during the year. 7. Provided services on account of $48,000. 8. Collected $48,000 cash from accounts receivable. 9. Paid a cash dividend of $7,000 to the stockholders. 0. Paid other operating expensos of $34,500. Information for Year 2 Adjusting Entries 11. The advance payment for rentat of the office space (see Event 3) was made on March 1 for a one-year term. 2. The cash advance for services to be provided in the future was collected on October 1 (see Event 5 ). The one-year contract started on October 1 . 3. Had $1,800 of supplies remaining on hand at the end of the period. 4. Recognized accrued sblaries of $5,400 at the end of the accounting period. Required: a. Identify eoch event affecting the Year 1 and Year 2 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Record the effects of each event under the appropriate account headings of the accounting equation. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cosh fiows for Year 1 and Year 2 . Complete this question by entering your answers in the tabs below. Identify each event affecting the Year 1 accounting peribds as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE), Record appropriate account headings of the accounting equation. Nores. Enter any decreases to account balances with a minus sign! Identry each event affecting the Year 1 accounting periods as asset source (AS), asset use (AU), asset exchange (AC), or claims exchange (CE). Record the effects of each) appropriate account headings of the accounting equation. Note: Enter any decreases to account balances with a minus sign. Identify each event affecting the Ycar 2 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Record the effects account headings of the accounting equation. Notel Enter any decreases to account balances with a minus sign. Prepare an income statement for Year 1 and Year 2. Prepare the statement of changes in stockholders' equity for Year 1 and Year 2 Prepare the balance sheet for Year 1 and Year 2 . ALCORN SERVICE COMPANY Statements of Cash Flows. For the Years Ended December 31, Year 1 and Year 2

Answer & Explanation Solved by verified expert

See Answer