Alcorn Service Company was formed on January 1, Year 1.Events Affecting the Year 1 Accounting PeriodAcquired $69,000 cash from the issue of common stock.Purchased $3,000 of supplies on account.Purchased land that cost $36,000 cash.Paid $3,000 cash to settle accounts payable created in Event 2.Recognized revenue on account of $60,000.Paid $30,000 cash for other operating expenses.Collected $47,000 cash from accounts receivable.Information for Year 1 End-of-Period AdjustmentsRecognized accrued salaries of $4,100 on December 31, Year 1.Had $1,100 of supplies on hand at the end of the accounting period.Events Affecting the Year 2 Accounting PeriodAcquired $29,000 cash from the issue of common stock.Paid $4,100 cash to settle the salaries payable obligation.Paid $6,300 cash in advance to lease office space.Sold the land that cost $36,000 for $36,000 cash.Received $7,500 cash in advance for services to be performed in the future.Purchased $1,900 of supplies on account during the year.Provided services on account of $41,000.Collected $42,000 cash from accounts receivable.Paid a cash dividend of $8,000 to the stockholders.Paid other operating expenses of $28,500.Information for Year 2 End-of-Period AdjustmentsThe advance payment for rental of the office space (see Event 3) was made on March 1 for a one-year term.The cash advance for services to be provided in the future was collected on October 1 (see Event 5). The one-year contract started on October 1.Had $1,200 of supplies remaining on hand at the end of the period.Recognized accrued salaries of $4,800 at the end of the accounting period.Required:a. Identify each event affecting the Year 1 and Year 2 accounting periods as asset source, asset use, asset exchange, or claims exchange. Record the effects of each event under the appropriate account headings of the accounting equation.b-1. Prepare an income statement for Year 1 and Year 2.b-2. Prepare the statement of changes in stockholders’ equity for Year 1 and Year 2.b-3. Prepare the balance sheet for Year 1 and Year 2.b-4. Prepare the statement of cash flows for Year 1 and Year 2.