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Events Affecting the Year 1 Accounting Period 1. Acquired $77,000 cash from the issue of common stock 2. Purchased $4,600 of supplies on account. 3. Purchased land that cost $52,000 cash, 4. Paid $4,600 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $76,000. 6. Paid $38,000 cash for other operating expenses. 7. Collected $55,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,900 on December 31, Year 1. 9. Had $1,900 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $37,000 cash from the issue of common stock 2. Pald $4.900 cash to settle the salaries payable obligation 3. Paid $8,700 cash in advance to lease office space. 4. Sold the land that cost $52,000 for $52,000 cash 5. Received $9.900 cash in advance for services to be performed in the future. 6. Purchased $2,700 of supplies on account during the year. 7. Provided services on account of $49,000 8. Collected $50,000 cash from accounts receivable 9. Pald a cash dividend or $9,000 to the stockholders. 10. Pald other operating expenses of $36,500. Information for Year 2 Adjusting Entries 11. The advance payment for rental of the office space (see Event 3) was made on March for a one-year torm 12. The cash advance for services to be provided in the future was collected on October (see Event 5 The one your contract started on October 13. Had $2,000 of supplies remaining on hand at the end of the period 14. Recognized accrued salaries of $5,600 at the end of the accounting period 15. Recognized $2,100 of accrued interest revenue COWBOY ICE CREAM COMPANY Accounting Equation for Year 1 Assets Accounts Receivable Cash Liabilities Salaries Payable Prepaid Ront Supplies Stockholders' Equity Common Retained Stock Earnings Accounts Payable Land Uneamed Revenue COLUMN Event INTENTIALLY BLANK 1 2 3 4 5 5 7 Totals 0 0 0 Acolo Equation Year 2 > COLUMN Event INTENTIONALLY BLANK Bal COWBOY ICE CREAM COMPANY Accounting Equation for Year 2 Assets Prepaid Interest Supplies Rent Land Recevable Unearned Liabilities Salaries Payable Account Receivable Cash Account Payable Stockholders Common Rotalne Stock 1 2 3 4 5 7 OP- 10 11 12 13 15 Acto Enton