11 and 12

accounts receivable. dividend of $2,000 to the stockholders. 10. Paid other operating expenses of $2,850. Information for Year 2 Adjusting Entries 11. The advance payment for rental of the office space (see Event 3) was made on March 1 one-year term. 12. The cash advance for services to be provided in the future was collected on October 1 (see Ever The one-year contract started on October 1. changes in stockholders' equity, balance sheet, and statement of cash flows (show activity on the statement of cash flows). Use the accounts and balances from Barker Company to construct an income sta LO 3-1, 3-2, 3-3 Problem 3-31A Events for two complete accounting cyeles eXcel Alcorn Service Company was formed on January 1. Year I. Events Affecting the Year 1 Accounting Period K FIGURES ome, Year 1: $2,400 me, Year 2: $8,650 . Acquired $20,000 cash from the issue of common stock. 2. Purchased $800 of supplies on account. 3. Purchased land that cost $14,000 cash. 4. Paid $800 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $10,500. 6. Paid $3,800 cash for other operating expenses. 7. Collected $7,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $3.600 on December 31, Year 1. 9. Had-$100 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $15,000 cash from the issue of common stock. 2. Paid $3,600 cash to settle the salaries payable obligation. 3. Paid $9,000 cash in advance to lease office space. 4. Sold the land that cost $14,000 for $14,000 cash. 5. Received $6,000 cash in advance for services to be performed in the future. 6. Purchased $2,400 of supplies on account during the year. 7. Provided services on account of $24,500. 8. Collected $12,600 cash from accounts receivable. 9. Paid a cash dividend of $2,000 to the stockholders. 10. Paid other operating expenses of $2,850. Information for Year 2 Adjusting Entries 11. The advance payment for rental of the office space (see Event 3) was made on M one-year term. 12. The cash advance for services to be provided in the future was collected on October 1 ( The one-year contract started on October 1