Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete this question by entering yosur answers in the tabs befow. Weparn the statement of changes in stockholders' equity for Year 1 and Yeaf 2.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Complete this question by entering yosur answers in the tabs befow. Weparn the statement of changes in stockholders' equity for Year 1 and Yeaf 2. Cnmplete this question by wentering vour answers in the fabs below. Prepare an incemestatement fer Year I and Year.2.1 topted bo nok round intermedare culculabers. 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, using the vertical statements model. Complete this question by entering your answers in the tabs below. Prepare the balance sheet for Year 1 and Year 2. Required informotion [The following information applies to the questions displayed below] Alcorn Service Company was formed on January 1 , Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $67.000 cash from the issue of common stock 2. Purchased \$2,600 of supplies on account. 3. Purchased land that cost $32,000 cash 4. Paid $2,600 cash to settle accounts payable created in Event 2 5. Recognized revenue on account of $56,000 6. Paid $28,000 cash for other operating expenses 7. Collected $45,000 cash from accounts recelvable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $3,900 on December 31 Year 1 9. Had $900 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $27,000 cash from the issue of common stock 2. Paid $3,900 cash to settle the salarles payable obligation 3. Paid $5,700 cash in advance to lease office space 4. Sold the land that cost $32,000 for $32.000 cash. 5. Recelved $6,900 cash in advance for services to be performed in the future 6. Purchased $1,700 of supplies on account during the year: 7. Provided services on account of $39,000 8. Collected $40,000 cash from accounts receivable. 9. Paid a cash dividend of $6,000 to the stockholders. 10. Paid other operating expenses of $26,500. 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 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 $1,000 of supplies remaining on hand at the end of the period 14. Recognized accrued salaries of $4,600 at the end of the accounting period. 15. Recognized $1,100 of accrued interest revenue. 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-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 , using the vertical statements model. Complete this question by entering your answers in the tabs below. Prepare the statement of cash flows for Year 1 and Year 2, using the vertical statements model. Note: Cash outflows should be indicated with a minus sign

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CISA Certified Information Systems Auditor All In One Exam Guide

Authors: Peter H. Gregory

4th Edition

1260458806, 978-1260458800

More Books

Students also viewed these Accounting questions

Question

1. In what ways has flexible working revolutionised employment?

Answered: 1 week ago