Question

3 5 ponts Events Affecting the Year 2 Accounting Period 1. Acquired $20,000 cash from the issue of common stock 2. Pald $3,200 cash to settle the salaries payable obligation 3. Paid $3,600 cash in advance to lease office space 4. Sold the land that cost $18,000 for $18,000 cash 5. Received $4,800 cash in advance for services to be performed in the future 6. Purchased $1000 of supplies on account during the year 7. Provided services on account of $32.000 8. Collected $33,000 cash from accounts receivable 9. Paid a cash dividend of $5,000 to the stockholders 10. Paid other operating expenses of $19.500 Information for Year 2 Adjusting Entries 11 The advance payment for rental of the office space (see vent 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 $300 of supplies remaining on and of the end of the period 14 Recognized occrued solaries of $3.000 at the end of the accounting period Required a. Identify each event affecting the Year 1 and Year 2 accounting periods as asset source (AS) asset use (AU), asset exchange (AE). claims exchange (CE) Record the effects of each evet 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 cash flows for Year and Year 2 Complete this question by entering your answers in the tabs below.

Answer 1

Alcorn Service Company Accounting Equation for Year 2 Assets Accounts Receivable Supplies Prepaid Rent 4000 1400 Land 18000 Event Type of Event Bal. 1 AS 2 AU 3 AE Cash 57800 20000 -3200 -3600 Liabilities Stock Equity Accounts Payable Salaries Payable Unearned Revenue + Common Stock Retained Earnings 3200 18000 60000 + 20000 -3200 + 3600 + 4 AE 18000 - 18000 = + 5 AS 4800 = 4800 + 6 AS 1000 1000 + 7 AS = + 32000 Service Revenue 32000 -33000 8 AE + 33000 -5000 9 AU + -5000 Cash Dividend 10 AU -19500 = + 11 AU -3000 = + = - 1200 + 12 13 CE AU -19500 -3000 1200 -2100 -3900 -300 Operating expense Rent Expense Service Revenue Supplies expense Salary expense -2100 + + 14 Totals 3900 3900 102300 3000 300 600 0 1000 21600 + 80000 106200 106200

Statement of Income For the period ending Statement of Cashflows For the period ending Year 2 Service Revenue Total Revenue Year 2 33200 33200 Balance Sheets As of December 31, Year 1 and Year 2 Year 2 Assets Cash 102300 Accounts Receivable 3000 Supplies 300 Prepaid Rent 600 Land 0 Total Assets 106200 Cash Flows From Operating Activities: Cash Receipts from Customers Cash Payments for Expense Net Cash Flow from Operating Activities 37800 -26300 11500 Expenses: Operating Expenses Supplies Expense Salaries Expense Rent Expense Total Expenses Net Income (Loss) 19500 2100 3900 3000 28500 4700 Cash Flows From Investing Activities: Cash Payment for Land Cash Proceeds from Sale of Land Net Cash Flow From Investing Activities 18000 18000 1000 Liabilities Accounts Payable Salaries Payable Unearned Revenue Total Liabilities 3900 21600 26500 Cash Flows From Financing Activities: Cash Receipts from Stock Issue Cash Payment for Dividends Net Cash Flow From Financing Activities Statements of Changes in Stockholders' Equity For the period ending Year 2 Beginning Common Stock 60000 Plus: Stock Issued 20000 Ending Common Stock 80000 20000 -5000 15000 Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liab. and Stock. Equity 80000 -300 79700 Net Change in Cash Plus: Beginning Cash Balance Ending Cash Balance 44500 38600 83100 29600 106200 Beginning Retained Earnings Plus/Less: Net Income (Loss) Less: Dividends Ending Retained Earnings 4700 -5000 29300 Total Stockholders' Equity 109300