Help Save & Exit Events Affecting the Year 2 Accounting Period 1. Acquired $21,000 cash from the issue of common stock. 2. Paid $3,300 cash to settle the salaries payable obligation. 3. Paid $3,900 cash in advance to lease office space. 4. Sold the land that cost $20,000 for $20,000 cash. 5. Received $5,100 cash in advance for services to be performed in the future. 6. Purchased $1,100 of supplies on account during the year. 7. Provided services on account of $33,000. 8. Collected $34,000 cash from accounts receivable. 9. Paid a cash dividend of $6,000 to the stockholders. 10. Paid other operating expenses of $20,500. 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 $400 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $4,000 at the end of the accounting period. 15. Recognized $500 of accrued interest revenue. 7 8. 22 COLUMN Event INTENTIONALLY BLANK Bal 1 2 3. 4. 5. 6. COWBOY ICE CREAM COMPANY Accounting Equation for Year 2 Assets Liabilities Cash Accounts Receivable Supplies Prepaid Rent Land Interest Receivable Accounts Salaries Payable Payable Unearned Revenue Stockhold Common Stock uired information Assets Accounting Equation for Year 2 oplies Prepaid Rent Land Interest Receivable 11 Liabilities + Accounts Salaries Unearned Payable Payable Revenue Common Stock Stockholders' Equity Retained Earnings