$889$ Homework

$1$

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iThe railowng wiarmation appiles to the questions dispioy ed beiow i

Alcorn Service Company was formed on January $1,$ Year $1.$

Events Affecting the Year $1$ Accounting Perlot

Acqulred $$78,000$ cash from the issue of common stock

Purchased $$4,800$ of supplles on account.

Purchased land that cost $$54,000$ cash.

Pald $$4,800$ cash to settle accounts payable created in Event $2$

Recognized revenue on account of $$78,000.$

Pald $$39,000$ cash for other oper ating expenses.

Collected $$56,000$ cash from accounts receNable.

Information for Year $1$ Adjusting Entrles

$8.$ Recognized accued salarles of $$5,000$ on December $31,$ Year $1.$

$9.$ Had $$2000$ of supplles on hand at the end of the accounting perlod.

Events Affecting the Year $2$ Accounting Perlod

Acquired $$38,000$ cash from the issue of common stodk.

Pald $$5,000$ cash to settle the salarles payable obligation.

Pald $$9,000$ cash in aduance to lease office space.

Sold the land that cost $$54,000$ for $$54,000$ cash.

Recelved $$10,200$ cash in aduance for services to be performed in the future.

Purchased $$2800$ of supplles on account during the year.

Prowided services on account of $$50,000.$

Collected $$51,000$ cash from accounts recevable.

Pald a cash dividend of $$4,000$ to the stockholders

Pald other oper ating expenses of $$37,500.$

Information for Year $2$ Adjusting Entrles

$11.$ The advance payment for rental of the office space $($see Event $3$ was made on March $1$ for a oneyear term.

$12.$ The cash advance for services to be prowided in the future was colleced on Odober $1($see Event $5)$ The oneyear contract started on October $1.$

$13.$ Had $$2100$ of supplles remaining on hand at the end of the perlod.

$14.$ Recagnized accued salarles of $$5,700$ at the end of the accounting perlod.

$15.$ Recagnized $$2200$ of accrued interest revenue.

Bequired:

Identfy each event affecting the Year $1$ and Year $2$ accounting perlods as asset source $($AS$),$ a sset use $($AU$),$ asset exch ange $($A$.$E$),$ or daims exchange $($CE$).$ Record the effecs of each ovent under the approplate gener al ledger account headings of the accounting equation.

Complete this question by entering your answers in the tabs below.

Woxig Equalian

Wraly Equslian

Vesl $1$

Yes $2$

Identify each event, affecting the Year $1$ accounting periods as asset source $($AS$),$ asset use $($AU$),$ asset exchange $($AE$),$ or claims exchange $($CE$).$ Record the effects of each event under the appropriate general ledger account headings of the accounting equation.

Note: Do not round intermediate calculations, Enter any decreases to account balances with a minus sign.

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