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Required information The following information applies to the questions displayed below.) Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $70,000 cash from the issue of common stock. 2. Purchased $3,200 of supplies on account. 3. Purchased land that cost $38,000 cash. 4. Paid $3,200 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $62,000. 6. Paid $31,000 cash for other operating expenses. 7. Collected $48,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,200 on December 31, Year 1. 9. Had $1,200 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $30,000 cash from the issue of common stock. 2. Pald $4,200 cash to settle the salaries payable obligation 3. Pald $6,600 cash in advance to lease office space. 4. Sold the land that cost $38,000 for $38,000 cash. 5. Received $7,800 cash in advance for services to be performed in the future. 6. Purchased $2,000 of supplies on account during the year. 7. Provided services on account of $42,000. 8. Collected $43,000 cash from accounts receivable. 9. Paid a cash dividend of $9,000 to the stockholders. 10. Pald other operating expenses of $29,500. Information for Year 2 Adjusting Entries 11. The advance payment for rental of the office space (see Event 3) was made on March 1 for a one-year term. 12. 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. 13. Had $1,300 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $4,900 at the end of the accounting period. 15. Recognized $1,400 of accrued interest revenue. Required Identify each event affecting the Year and Year 2 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), daims exchange (CE). Rocord the effects of each event under the appropriate general ledger account headings of the accounting equation Complete this question by entering your answers in the tabs below. Acety Equation Acctg Equation Year 1 Year 2 Identity each event affecting the Year 1 accounting periods as asset source (AS), asset use (AU), asset exchange (At), or claims exchange (CE). Record the effects of each event under the appropriate general ledger account headings of the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) ALCORN SERVICE COMPANY Accounting Equation for Year 1 Event Type of Event Asses Supplies Cash Accounts Receivable Prepaid Liabilities Salaries Payable Acous Payable Land Rent Stockholderquity Common Retained Stock Earnings Untamed Revenue 1 2 3 4 5 7 Torials Aortg Equation Year 2 > Complete this question by entering your answers in the tabs below. Aceto Equation Act Equation Year 1 Year 2 Identify each event affecting the Year 2 accounting periods as asset source (AS), asset use (AU), assct exchange (AE), er claims exchange (CE) Record the effects of each went under the appropriate general ledger account headings of the accounting equation. (Do not round intermediate calculations. Enter any decrease ccount balances with a minus sign) Type ALCORN SERVICE COMPANY Accounting Equation for Year 2 Assets Supplies Prepaid Interest Rent Receivable Event Accounts Receivable Liabilities Accounts les Unearned Payable Payatilo Revenue stolders' Equity Common Retained Stock Earnings Bal 1 2 3 4 5 0 11 . . 4 10 11 12 13 14 15. Total . + + Aceto Equation Year 1 b-1. Prepare an income statement for Year 1 and Year 2. b-2. Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. b-3. Prepare the balance sheet for Year 1 and Year 2. 1-4. Prepare the statement of cash flows for Year 1 and Year 2, using the vertical statements model. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Reg B3 Req B4 Prepare an income statement for Year 1 and Year 2. (Do not round Intermediate calculations.) ALCORN SERVICE COMPANY Income Statements For the Years Ended December 31, Year 1 and Year 2 Year 1 Year 2 Total revenue Expenses Total expenses b-1. Prepare an income statement for Year 1 and Year 2. b-2. Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. b-3. Prepare the balance sheet for Year 1 and Year 2. b-4. Prepare the statement of cash flows for Year 1 and Year 2, using the vertical statements model. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Reg B3 Reg B4 Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. ALCORN SERVICE COMPANY Statement of Changes in Stockholders' Equity For the Years Ended December 31, Year 1 and Year 2 Year 1 Year 2 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity b-1. Prepare an income statement for Year 1 and Year 2. b-2. Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. b-3. Prepare the balance sheet for Year 1 and Year 2. b-4. Prepare the statement of cash flows for Year 1 and Year 2, using the vertical statements model. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Reg B3 Reg B4 Prepare the balance sheet for Year 1 and Year 2. ALCORN SERVICE COMPANY Balance Sheets As of December 31, Year 1 and Year 2 Year 1 Year 2 Assets Total assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity b-1. Prepare an income statement for Year 1 and Year 2. b-2. Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. b-3. Prepare the balance sheet for Year 1 and Year 2. b-4. Prepare the statement of cash flows for Year 1 and Year 2, using the vertical statements model. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Req B3 Req B4 Prepare the statement of cash flows for Year 1 and Year 2, using the vertical statements model. (Cash outflows should be Indicated with a minus sign.). ALCORN SERVICE COMPANY Statements of Cash Flows For the Years Ended December 31, Year 1 and Year 2 Year 1 Year 2 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities Net change in cash Ending cash balance

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