Bower Consulting Company started the period with cash of $47,000, common stock of $24,000, and retained earnings of $23,000. Bower engaged in the following transactions in Year 2: Transactions during Year 2 1. On January 1, Year 2. purchased office furniture for $23,000. 2. On March 1, paid $8,700 for an insurance policy that provides coverage for 12 months beginning immediately. 3. Purchased $2,900 of supplies for cash. 4. Provided $50,000 of services for cash. 5. Paid $10,100 for salaries expense. 6. On April 1, received $23,000 for services that will be performed over the next 12 months beginning immediately. Information for Adjusting Entries 7. The furniture had an estimated life of six years and a $5,000 salvage value. 8. Recognized the expired insurance. 9. An inventory of supplies showed $800 of supplies on hand as of December 31. 10. Recognized the revenue associated with Event 6 as of December 31. Required a-1. Record the 10 events in general journal format. a-2. Post the above transactions into the appropriate T-accounts. b-1. Prepare the income statement. b-2. Prepare the balance sheet. b-3. Prepare the statement of cash flows. Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 On January 1, Year 2, purchased office furniture for $23,000. Note: Enter debits before credits. Event General Journal Debit Credit 1 2 3 4 5 6 7 8 9 10 10 On March 1, paid $8,700 for an insurance policy that provides coverage for 12 months beginning immediately. Note: Enter debits before credits. Event 2 General Journal Debit Credit > < 1 1 2 CRw 4 5 6 7 8 9 Purchased $2,900 of supplies for cash. Note: Enter debits before credits. Event 3 10 10 General Journal Debit Credit Journal entry worksheet < 1 2 3 5 6 7 8 Provided $50,000 of services for cash. Note: Enter debits before credits. Event 4 10 10 6 General Journal Debit Credit > Journal entry < 1 2 3 Paid $10,100 for salaries expense. Note: Enter debits before credits. Event 5 Gr 6 7 8 9 10 10 General Journal Debit Credit Journal entry worksheet < 1 2 3 4 5 7 8 9 10 > On April 1, received $23,000 for services that will be performed over the next 12 months beginning immediately. Note: Enter debits before credits. Event 6 General Journal Debit Credit Journal entry worksheet 16 5 8 9 10 10 The furniture had an estimated life of six years and a $5,000 salvage value. < 1 2 3 4 5 Note: Enter debits before credits. Event 7 General Journal Debit Credit Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 > Recognized the expired insurance. Note: Enter debits before credits. Event 8 General Journal Debit Credit < 1 2 3 4 5 6 7 8 9 10 > 9 An inventory of supplies showed $800 of supplies on hand as of December 31. Note: Enter debits before credits. Event General Journal Debit Credit Journal entry worksheet < 1 1 2 3 4 5 6 7 8 9 o Recognized the revenue associated with Event 6 as of December 31. Note: Enter debits before credits. Event 10 General Journal Debit Credit