Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $74,000 cash from the issue of common stock. 2. Purchased $4,000 of supplies on account. 3. Purchased land that cost $46,000 cash. 4. Paid $4,000 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $70,000. 6. Paid $35,000 cash for other operating expenses. 7. Collected $52,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,600 on December 31, Year 1. 9. Had $1,600 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $34,000 cash from the issue of common stock. 2. Paid $4,600 cash to settle the salaries payable obligation. 3. Paid $7,800 cash in advance to lease office space. 4. Sold the land that cost $46,000 for $46,000 cash. 5. Received $9,000 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 $46,000. 8. Collected $47,000 cash from accounts receivable. 9. Paid a cash dividend of $6,000 to the stockholders. 10. Paid other operating expenses of $33,500. 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.