can you show me in b-1 how to get the 2019 service revenue?, b-2 how to get 2019 plus:net income, and b-3 how to get 2019 retained earnings? please show the numbers you used to come up with the answer.
Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period 1. Acquired $75,000 cash from the issue of common stock. 2. Purchased $4,200 of supplies on account. 3. Purchased land that cost $48,000 cash. 4. Paid $4,200 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $72.000. 6. Paid $36,000 cash for other operating expenses. 7. Collected $53,000 cash from accounts receivable. Information for 2018 Adjusting Entries 8. Recognized accrued salaries of $4,700 on December 31, 2018. 9. Had $1,700 of supplies on hand at the end of the accounting period. Events Affecting the 2019 Accounting Period 1. Acquired $35,000 cash from the issue of common stock. 2. Paid $4,700 cash to settle the salaries payable obligation. 3. Paid $8,100 cash in advance to lease office space. 4. Sold the land that cost $48,000 for $48,000 cash. 5. Received $9,300 cash in advance for services to be performed in the future. 6. Purchased $2.500 of supplies on account during the year. 7. Provided services on account of $47.000. 8. Collected $48,000 cash from accounts receivable. 9. Paid a cash dividend of $7,000 to the stockholders. 10. Paid other operating expenses of $34,500. Information for 2019 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 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. 13. Had $1,800 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $5.400 at the end of the accounting period. 15. Recognized $1900 of accrued interest revenue, 1. Prepare an income statement for 2018 and 2019. 2. Prepare the statement of changes in stockholders' equity for 2018 and 2019. 3. Prepare the balance sheet for 2018 and 2019, ALCORN SERVICE COMPANY Income Statements For the Years Ended December 31, 2018 and 2019 2018 2019 Service revenue $ 72,000 $ 50,325 x 1,900 Interest revenue 0 0 0 Total revenue 72,000 52,225 ALCORN SERVICE COMPANY Statement of Changes in Stockholders' Equity For the Years Ended December 31, 2018 and 2019 2018 2019 $ 0 Beginning common stock Plus Stock issued $ 75,000 35,000 75,000 75,000 Ending common stock Beginning retained earnings Plus: Net income $ 0 28,800 110,000 28,800 1,275 x (7,000) 23 075 $ 133,075 Less: Dividend 0 Ending retained earnings 28,800 $ 103,800 Total stockholders' equity ALCORN SERVICE COMPANY Balance Sheets As of December 31, 2018 and 2019 2018 2019 Assets Cash $ 39,800 $ 125,800 19,000 18,000 1,700 Accounts receivable Supplies Prepaid rent Land Interest receivable 1,800 1,350 0 48,000 0 0 1,900 0 0 Total assets $ 108 500 $ 148,850 $ 0 Liabilities Accounts payable Salaries payable Unearned revenue 4,700 $ 2,500 5,400 6,975 0 0 0 4,700 14,875 Total liabilities Stockholders' Equity Common stock Retained earnings 75,000 28,800 110,000 0 x
