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29 [The following information applies to the questions displayed below] Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1

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29 [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 $72,000 cash from the issue of common stock. 2. Purchased $3,600 of supplies on account. 3. Purchased land that cost $42,000 cash. 4. Paid $3,600 cash to settie accounts payable created in Event 2 , 5. Recognized revenue on account of $66,000. 6. Paid $33,000 cash for other operating expenses 7. Collected $50,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,400 on December 31, Year 1. 9. Had $1,400 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $32.000 cash from the issue of common stock. 2. Paid $4,400 cash to settie the salaries payable obligation. 3. Paid $7.200 cash in advance to lease office space. 4. Sold the land that cost $42,000 for $42,000 cash. 5. Received $8,400 cash in advance for services to be performed in the future 6. Purchased $2.200 of supplies on account during the year. 7. Provided services on account of $44,000. 8. Collected $45.000 cash from accounts receivable. 9. Paid a cash dividend of $4,000 to the stockholders 10. Paid other operating expenses of $31,500 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 29 [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 $72,000 cash from the issue of common stock. 2. Purchased $3,600 of supplies on account. 3. Purchased land that cost $42,000 cash. 4. Paid $3,600 cash to settie accounts payable created in Event 2 , 5. Recognized revenue on account of $66,000. 6. Paid $33,000 cash for other operating expenses 7. Collected $50,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,400 on December 31, Year 1. 9. Had $1,400 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $32.000 cash from the issue of common stock. 2. Paid $4,400 cash to settie the salaries payable obligation. 3. Paid $7.200 cash in advance to lease office space. 4. Sold the land that cost $42,000 for $42,000 cash. 5. Received $8,400 cash in advance for services to be performed in the future 6. Purchased $2.200 of supplies on account during the year. 7. Provided services on account of $44,000. 8. Collected $45.000 cash from accounts receivable. 9. Paid a cash dividend of $4,000 to the stockholders 10. Paid other operating expenses of $31,500 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

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