Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $66,000 cash from the issue of common stock. 2. Purchased $2,400 of supplies on account. 3. Purchased land that cost $30,000 cash. 4. Pald $2,400 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $54,000. 6. Paid $27,000 cash for other operating expenses. 7. Collected $44,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $3,800 on December 31, Year 1. 9. Had $800 of supplies on hand at the end of the accounting period. ces Events Affecting the Year 2 Accounting Period 1. Acquired $26.000 cash from the issue of common stock. 2. Paid $3,800 cash to settle the salaries payable obligation 3. Pald $5,400 cash in advance to lease office space. 4. Sold the land that cost $30,000 for $30,000 cash 5. Received $6,600 cash in advance for services to be performed in the future. 6. Purchased $1,600 of supplies on account during the year 7. Provided services on account of $38,000 8. Collected $39,000 cash from accounts receivable. 9. Paid a cash dividend of $5,000 to the stockholders 10. Paid other operating expenses of $25,500 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 coin advance for services to be provided in the future was collected on October 1see Event 5). The one year contract started on October 1 13. Had 5900 of supplies remaining on hand at the end of the period. 1. Recognized accrued stories of $4,500 at the end of the accounting period Required siderruly each event affecting the year and your accounting products assets Asset exchange (AD).on Claims exchange ICE) Record moeten of each event under the scopriate account readings of the accounting cautions b. Prepare an income statement atement of changes in stockholder.cauit balance sheet and statement of cash news for Yeart and Year 2 Required B Bal Required B Required A Required A Required 8 Inc Required B Year 1 Year 2 Stmt Stmt Stmt of Cash Stkholders Eg Sheet Flows Identify each event affecting the Year 1 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Reco appropriate account headings of the accounting equation. (Enter any decreases to account balances with a minus sign.) ALCORN SERVICE COMPANY Accounting Equation for Year 1 Type Assets Liabilities Stockholders' Equity Event of Accounts Prepaid Supplies Accounts Cash Land Salarien Unearned Event Common Retained Receivable Rent Payable Payable Revenue Stock Earnings 1 AS AS 2 3 4 5 6 7 AE AU AS AL AE AU Q O. O To Required A Year 3 > identify each event affecting the Year 2 accounting periods as asset source (AS), asset use (AU), asset exchange (AL), or claims exchange (CE). Record the effects account headings of the accounting equation. (Enter any decreases to account balances with a minus sign) ALCORN SERVICE COMPANY Accounting Equation for Year 2 Assets Type of Event Event Stockholders Equity Common Retained Stock Earnings Accounts Receivable Cash Liabilities Salaries Payable Prepaid Rent Supplies Account Payable Land Uneamed Revenue AS AU AE 2 3. 4 5. AE AS 6 7 B AS CE AE AU AU AU 10 12 13 AE AU 14 CE 0 0 Totais Required B Bal Sheet Required A Required A Required B In Required B Year 1 Stmt Year 2 Stmt Stkholders Eq Prepare an income statement for Year 1 and Year 2. Required B Stmt of Cash Flows ALCORN SERVICE COMPANY Income Statements For the Years Ended December 31, Year 1 and Year 2 Year 1 Yoar 2 Service revenue Unearned revenue Total revenue 0 Expenses Operating expenses Salaries expense Supplies expense Rent expense 0 0 0 Total expenses Net income 0 $ 0 Required B Bal Required B es Required A Required A Required B Inc Required B Stmt Year 1 Year 2 Stmt Stmt of Cash Stkholders Eg Sheet Flows Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. ALCORN SERVICE COMPANY Statement of Changes in Stockholders' Equity For the Years Ended December 31, Year 1 and Year 2 Year 1 Year 2 0 0 Beginning common stock Plus: Stock issued Ending common stock Beginning retained earnings Plus: Net income Less: Dividend Ending retained earnings Total stockholders' equity 0 0 0 $ 0 Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $66,000 cash from the issue of common stock. 2. Purchased $2,400 of supplies on account. 3. Purchased land that cost $30,000 cash. 4. Pald $2,400 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $54,000. 6. Paid $27,000 cash for other operating expenses. 7. Collected $44,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $3,800 on December 31, Year 1. 9. Had $800 of supplies on hand at the end of the accounting period. ces Events Affecting the Year 2 Accounting Period 1. Acquired $26.000 cash from the issue of common stock. 2. Paid $3,800 cash to settle the salaries payable obligation 3. Pald $5,400 cash in advance to lease office space. 4. Sold the land that cost $30,000 for $30,000 cash 5. Received $6,600 cash in advance for services to be performed in the future. 6. Purchased $1,600 of supplies on account during the year 7. Provided services on account of $38,000 8. Collected $39,000 cash from accounts receivable. 9. Paid a cash dividend of $5,000 to the stockholders 10. Paid other operating expenses of $25,500 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 coin advance for services to be provided in the future was collected on October 1see Event 5). The one year contract started on October 1 13. Had 5900 of supplies remaining on hand at the end of the period. 1. Recognized accrued stories of $4,500 at the end of the accounting period Required siderruly each event affecting the year and your accounting products assets Asset exchange (AD).on Claims exchange ICE) Record moeten of each event under the scopriate account readings of the accounting cautions b. Prepare an income statement atement of changes in stockholder.cauit balance sheet and statement of cash news for Yeart and Year 2 Required B Bal Required B Required A Required A Required 8 Inc Required B Year 1 Year 2 Stmt Stmt Stmt of Cash Stkholders Eg Sheet Flows Identify each event affecting the Year 1 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Reco appropriate account headings of the accounting equation. (Enter any decreases to account balances with a minus sign.) ALCORN SERVICE COMPANY Accounting Equation for Year 1 Type Assets Liabilities Stockholders' Equity Event of Accounts Prepaid Supplies Accounts Cash Land Salarien Unearned Event Common Retained Receivable Rent Payable Payable Revenue Stock Earnings 1 AS AS 2 3 4 5 6 7 AE AU AS AL AE AU Q O. O To Required A Year 3 > identify each event affecting the Year 2 accounting periods as asset source (AS), asset use (AU), asset exchange (AL), or claims exchange (CE). Record the effects account headings of the accounting equation. (Enter any decreases to account balances with a minus sign) ALCORN SERVICE COMPANY Accounting Equation for Year 2 Assets Type of Event Event Stockholders Equity Common Retained Stock Earnings Accounts Receivable Cash Liabilities Salaries Payable Prepaid Rent Supplies Account Payable Land Uneamed Revenue AS AU AE 2 3. 4 5. AE AS 6 7 B AS CE AE AU AU AU 10 12 13 AE AU 14 CE 0 0 Totais Required B Bal Sheet Required A Required A Required B In Required B Year 1 Stmt Year 2 Stmt Stkholders Eq Prepare an income statement for Year 1 and Year 2. Required B Stmt of Cash Flows ALCORN SERVICE COMPANY Income Statements For the Years Ended December 31, Year 1 and Year 2 Year 1 Yoar 2 Service revenue Unearned revenue Total revenue 0 Expenses Operating expenses Salaries expense Supplies expense Rent expense 0 0 0 Total expenses Net income 0 $ 0 Required B Bal Required B es Required A Required A Required B Inc Required B Stmt Year 1 Year 2 Stmt Stmt of Cash Stkholders Eg Sheet Flows Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. ALCORN SERVICE COMPANY Statement of Changes in Stockholders' Equity For the Years Ended December 31, Year 1 and Year 2 Year 1 Year 2 0 0 Beginning common stock Plus: Stock issued Ending common stock Beginning retained earnings Plus: Net income Less: Dividend Ending retained earnings Total stockholders' equity 0 0 0 $ 0