Instructions: Use the information below to complete the horizontal financial statements model. Gossett...
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Accounting
Instructions:
Use the information below to complete the horizontal financial statements model.
Gossett Company had the following balances in its accounting records as of December 31, Year 1 : The following accounting events apply to Gossett Company's Year 2 fiscal year: Jan. 1 Acquired an additional $30,000 cash from the issue of common stock. Apr. 1 Paid $7,200 cash in advanced for a one-year lease for office space. Cell reference this amount to the Inputs area. June 1 Paid a $5,000 cash dividend to the stockholders. July 1 Purchased additional land that cost $40,000 cash. Aug. 1 Made a cash payment on accounts payable of $21,000. Sept. 30 Sold land for $20,000 cash that had originally cost $20,000. Oct. 1 Purchased $1,200 of supplies on account. Cell reference this amount to the Inputs area. Dec. 31 Earned $75,000 of service revenue on account during the year. 31 Received $62,000 cash collections from accounts receivable. 31 Incurred $27,000 in other operating expenses on account during the year. Adjustments 1 Recognized accrued salaries expense of $18,000. 2 Had $100 of supplies on hand at the end of the period. 3 Recognize rent that has expired. 4 Recognize unearned revenue that has now been earned
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