Complete this question by entering your answers in the tabs below. Required Required Required |Required Required Required B Stmt of Bal B Inc B Stmt A Year 2 A Year 1 Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. ALCORN SERVICE COMPANY Statement of Changes in Stockholders' Equity For the Years Ended December 31, Year 1 and Year 2 Year 2 Year 1 $ 0 74,000 Beginning common stock $ Plus: Stock issued Ending common stock Beginning retained earnings Plus: Net income Less: Dividend Ending retained earnings 34,000 74,000 108,000 74,000 $ 0 28,000 28,000 0 6,000 22,000 28,000 $ 102,000 130,000 Total stockholders' equity Required B Inc Stmt Required B Bal Sheet Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $74,000 cash from the issue of common stock 2. Purchased $4,000 of supplies on account. 3. Purchased land that cost $46,000 cash. 4. Paid $4,000 cash to settle accounts payable created in Event 2 5. Recognized revenue on account of $70,000. 6. Paid $35,000 cash for other operating expenses. 7. Collected $52,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,600 on December 31, Year 1 9. Had $1,600 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $34,000 cash from the issue of common stock. 2. Paid $4,600 cash to settle the salaries payable obligation 3. Paid $7,800 cash in advance to lease office space. 4. Sold the land that cost $46,000 for $46,000 cash. 5. Received $9,000 cash in advance for services to be performed in the future. 6. Purchased $2,400 of supplies on account during the year 7. Provided services on account of $46,000. 8. Collected $47,000 cash from accounts receivable. 9. Paid a cash dividend of $6,000 to the stockholders. O. Paid other operating expenses of $33,500. 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. 3. Had $1,700 of supplies remaining on hand at the end of the period. 4. Recognized accrued salaries of $5,300 at the end of the accounting period. Required: a. Identify each event affecting the Year 1 and Year 2 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Record the effects of each event under the appropriate general ledger account headings of the accounting equation b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year1 and Year 2, using the vertical statements model. 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. 2. 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 3. Had $1,700 of supplies remaining on hand at the end of the period 4. Recognized accrued salaries of $5,300 at the end of the accounting period. Required: a. Identify each event affecting the Year 1 and Year 2 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Record the effects of each event under the appropriate general ledger account headings of the accounting equation. b. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and 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. Required Required Required Required Required Required B Inc B Stmt of B Bal B Stmt A Year 1 A Year 2 Prepare the statement of cash flows for Year 1 and Year 2, using the vertical statements model. (Amounts to be deducted should be indicated with a minus sign.) ALCORN SERVICE COMPANY Statements of Cash Flows For the Years Ended December 31, Year 1 and Year 2 Year 1 Year 2 Cash flows from operating activities Cash receipts from customers Cash payment for expenses $52,000 $41,700 Net cash flow from operating activities Cash flows from investing acivities Cash payment for land Cash proceeds from sale of land 41,700 52,000 Net cash flow from investing activities 0 0 Cash flows from financing activities Cash receipts from stock issue Cash payment for dividends Net cash flow from financing 0 activities 41,700 Net change in cash Plus: Beginning cash balance Ending cash balance 52,000 $52,000 $41,700