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Events Affecting the 2019 Accounting Period Acquired $29,000 cash from the issue of common stock. Paid $4,100 cash to settle the salaries payable obligation. Paid

Events Affecting the 2019 Accounting Period

  1. Acquired $29,000 cash from the issue of common stock.

  2. Paid $4,100 cash to settle the salaries payable obligation.

  3. Paid $6,300 cash in advance to lease office space.

  4. Sold the land that cost $36,000 for $36,000 cash.

  5. Received $7,500 cash in advance for services to be performed in the future.

  6. Purchased $1,900 of supplies on account during the year.

  7. Provided services on account of $41,000.

  8. Collected $42,000 cash from accounts receivable.

  9. Paid a cash dividend of $8,000 to the stockholders.

  10. Paid other operating expenses of $28,500.

Information for 2019 Adjusting Entries

  1. 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 $1,200 of supplies remaining on hand at the end of the period.

  4. Recognized accrued salaries of $4,800 at the end of the accounting period.

  5. Recognized $1,300 of accrued interest revenue.

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  • Acc Equ 2019

Identify each event affecting the 2018 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. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)

ALCORN SERVICE COMPANY
Accounting Equation for 2019
Event Type of Event Assets = Liabilities + Stockholders Equity
Cash Accounts Receivable Supplies Prepaid Rent Land Interest Receivable = Accounts Payable Salaries Payable Unearned Revenue + Common Stock Retained Earnings
Bal. 47,000selected answer correct 13,000selected answer correct 1,100selected answer correct 0selected answer correct 36,000selected answer correct 0selected answer correct = 0selected answer correct 4,100selected answer correct 0selected answer correct + 69,000selected answer correct 24,000selected answer correct
1. ASselected answer correct 29,000selected answer correct not attempted not attempted not attempted not attempted not attempted = not attempted not attempted not attempted + 29,000selected answer correct not attempted
2. AUselected answer correct (4,100)selected answer correct not attempted not attempted not attempted not attempted not attempted = not attempted (4,100)selected answer correct not attempted + not attempted not attempted
3. AEselected answer correct (6,300)selected answer correct not attempted not attempted 6,300selected answer correct not attempted not attempted = not attempted not attempted not attempted + not attempted not attempted
4. AEselected answer correct 36,000selected answer correct not attempted not attempted not attempted (36,000)selected answer correct not attempted = not attempted not attempted not attempted + not attempted not attempted
5. ASselected answer correct 7,500selected answer correct not attempted not attempted not attempted not attempted not attempted = not attempted not attempted 7,500selected answer correct + not attempted not attempted
6. ASselected answer correct not attempted not attempted 1,900selected answer correct not attempted not attempted not attempted = 1,900selected answer correct not attempted not attempted + not attempted not attempted
7. ASselected answer correct not attempted 41,000selected answer correct not attempted not attempted not attempted not attempted = not attempted not attempted not attempted + not attempted 41,000selected answer correct
8. AEselected answer correct 42,000selected answer correct (42,000)selected answer correct not attempted not attempted not attempted not attempted = not attempted not attempted not attempted + not attempted not attempted
9. AUselected answer correct (8,000)selected answer correct not attempted not attempted not attempted not attempted not attempted = not attempted not attempted not attempted + not attempted (8,000)selected answer correct
10. AUselected answer correct (28,500)selected answer correct not attempted not attempted not attempted not attempted not attempted = not attempted not attempted not attempted + not attempted (28,500)selected answer correct
11. AUselected answer correct not attempted not attempted not attempted (6,300)selected answer incorrect not attempted not attempted = not attempted not attempted not attempted + not attempted (6,300)selected answer incorrect
12. CEselected answer correct not attempted not attempted not attempted not attempted not attempted not attempted = not attempted not attempted 7,500selected answer incorrect + not attempted (7,500)selected answer incorrect
13. AUselected answer correct not attempted not attempted (1,800)selected answer correct not attempted not attempted not attempted = not attempted not attempted not attempted + not attempted (1,800)selected answer correct
14. CEselected answer correct not attempted not attempted not attempted not attempted not attempted not attempted = not attempted 4,800selected answer correct not attempted + not attempted (4,800)selected answer correct
15. ASselected answer correct not attempted not attempted not attempted not attempted not attempted not attempted = not attempted not attempted not attempted + not attempted 1,300selected answer correct
Totals 114,600 12,000 1,200 0 0 0 = 1,900 4,800 15,000 + 98,000 9,400

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