Events Aftecting the Year $1$ Accounting Perlod

Acquired $$66,000$ cash from the issue of common stock.

Purchased $$2,400$ of supplies on account.

Purchased land that cost $$30,000$ cash.

Paid $$2,400$ cash to settle accounts psyable crested in Event $2$

Recognized revenue on account of $$54,000.$

Paid $$27,000$ cash for other operating expenses.

Collected $$44,000$ cash from accounts receivable.

Information for Year $1$ Adjusting Entries

Recognized accrued salaries of $$3,800$ on December $31,$ Year $1.$

Had $$800$ of supplies on hand at the end of the accounting period.

Events Affecting the Year $2$ Accounting Perlod

Acquired $$26,000$ cash from the issue of common stock.

Paid $$3,800$ cash to settle the salaries psyable obligation.

Paid $$5,400$ cash in advance to lease office space.

Sold the land that cost $$30,000$ for $$30,000$ cosh$.$

Received $$6,600$ cash in advance for services to be performed in the future.

Purchased $$1,600$ of supplies on account during the year.

Provided services on account of $$38,000.$

Collected $$39,000$ cosh from accounts receivable.

Paid a cosh cividend of $$5,000$ to the stockholders.

Paid other operating expenses of $$25,500.$

Information for Year $2$ Adjusting Entries

The advance payment for rental of the office space $($see Event $3)$ was made on March $1$ for a one$-$year term.

The cash advance for services to be provided in the future wss collected on October $1($see Event $5).$ The one$-$year

contract started on October $1.$

Had $$900$ of supplies remaining on hand at the end of the period.

Recognized accrued salaries of $$4,500$ at the end of the accounting period.

Recognized $$1,000$ of accrued interest revenue.

$2-$ Prepare an income statement for Year $1$ and Year $2$

$0-2$ Prepare the statement of changes in stockholders' equity for Year $1$ and Year $2$

$-3.$ Prepare the balance sheet for Year $1$ and Year $2$

$0-4.$ Prepare the statement of cash flows for Year $1$ and Year $2,$ using the vertical statements model.

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Prepare an income statement for Year $1$ and Year $2.($Do not round intermediste caloulations.$)$