Alcorn Service Company Income Statements For the years ended December 31, Year 1 & Year 2 |
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Year 1 | Year 2 | |
Service Revenue | $ 76,000 | $ 51,475 |
Interest Revenue | - | 2,100 |
Total Revenue | 76,000 | 53,575 |
Expenses | ||
Salaries Expense | 4,900 | 5,600 |
Supplies Expense | 2,700 | 2,600 |
Rent Expense | - | 7,250 |
Other Operating Expenses | 38,000 | 36,500 |
Total Expenses | 45,600 | 51,950 |
Net Income | $ 30,400 | $ 1,625 |
Alcorn Service Company Statement of Changes in Stockholders Equity For the years ended Decembe 31, Year 1 and Year 2 |
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Year 1 | Year 2 | |
Beginning common stock | $ 0 | $ 77,000 |
Plus: Stock issued | 77,000 | 37,000 |
Ending common stock | 77,000 | 114,000 |
Beginning retained earnings | 0 | 30,400 |
Plus: Net Income | 30,400 | 1,625 |
Less: Dividends | - | 9,000 |
Ending retained earnings | 30,400 | 23,025 |
Total stockholders equity | $ 107,400 | $ 137,025 |
Alcorn Service Company Balance Sheet December 31, Year 1 and Year 2 |
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Year 1 | Year 2 | |
Assets | ||
Cash | $ 37,400 | $ 127,200 |
Accounts Receivable | 21,000 | 20,000 |
Interest Receivable | - | 2,100 |
Supplies | 1,900 | 2,000 |
Prepaid Rent | 0 | 1,450 |
Land | 52,000 | - |
Total Assets | $ 112,300 | $ 152,750 |
Liabilities | ||
Accounts Payable | - | 2,700 |
Salaries Payable | 4,900 | 5,600 |
Unearned Revenue | - | 7,425 |
Total Liabilities | 4,900 | 15,725 |
Stockholders Equity | ||
Common Stock | 77,000 | 114,000 |
Retained Earnings | 30,400 | 23,025 |
Total Stockholders Equity | 107,400 | 137,025 |
Total Liabilities and Stockholders Equity | $ 112,300 | $ 152,750 |
Alcorn Service Company Statements of Cash Flows For the years ended December 31, Year 1 and Year 2 |
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Year 1 | Year 2 | |
Cash Flows from Operating Activities | ||
Cash received from customers | $ 55,000 | $ 59,900 |
Cash paid to creditors for supplies | (4,600) | |
Cash paid for salaries | (4,900) | |
Cash paid for rent | (8,700) | |
Cash paid for other operating expenses | (38,000) | (36,500) |
Net cash flow from Operating Activities | 12,400 | 9,800 |
Cash Flows from Investing Activities | ||
Cash paid for land | (52,000) | |
Proceeds from sale of land | 52,000 | |
Net cash flow from Investing Activities | (52,000) | 52,000 |
Cash Flows from Financing Activities | ||
Cash from issuance of common stock | 77,000 | 37,000 |
Cash paid for dividends | - | (9,000) |
Net cash flow from Financing Activities | 77,000 | 28,000 |
Net change in cash | 37,400 | 89,800 |
Beginning cash balance | 0 | 37,400 |
Ending cash balance | $ 37,400 | $ 127,200 |
Events Affecting the Year 1 Accounting Period 1. Acquired $77,000 cash from the issue of common...
Alcor Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period 1. Acquired $62,000 cash from the issue of common stock. 2. Purchased $1,600 of supplies on account. 3. Purchased land that cost $22,000 cash. 4. Paid $1,600 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $46,000. 6. Paid $23,000 cash for other operating expenses. 7. Collected $40,000 cash from accounts receivable. Information for 2018 Adjusting Entries 8. Recognized...
Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period Acquired $69,000 cash from the issue of common stock. Purchased $3,000 of supplies on account. Purchased land that cost $36,000 cash. Paid $3,000 cash to settle accounts payable created in Event 2. Recognized revenue on account of $60,000. Paid $30,000 cash for other operating expenses. Collected $47,000 cash from accounts receivable. Information for 2018 Adjusting Entries Recognized accrued salaries of $4,100 on December 31, 2018....
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