Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i cant figure out part 3-6 Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired

i cant figure out part 3-6
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $71,000 cash from the issue of common stock. 2. Purchased $3,400 of supplies on account. 3. Purchased land that cost $40,000 cash. 4. Paid $3,400 cash to settle accounts payable created in Event 2 . 5. Recognized revenue on account of $64,000. 6. Paid $32,000 cash for other operating expenses. 7. Collected $49,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,300 on December 31, Year 1 . 9. Had $1,300 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $31,000 cash from the issue of common stock. 2. Paid $4,300 cash to settle the salaries payable obligation. 3. Paid $6,900 cash in advance to lease office space. 4. Sold the land that cost $40,000 for $40,000 cash. 5. Received $8,100 cash in advance for services to be performed in the future. 6. Purchased $2,100 of supplies on account during the year. 7. Provided services on account of $43,000. 8. Collected $44,000 cash from accounts receivable. 9. Paid a cash dividend of $3,000 to the stockholders. 10. Paid other operating expenses of $30,500, 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. 12 Gert et Ann nt ritankend mmaininn an hand ot tha and aftha napiad 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 $1,400 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $5,000 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 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. Complete this question by enterinj your answers in the tabs below. Required B Statement of Cash Flows Prepare an income statement for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare an income statement for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. Prepare the balance sheet for Year 1 and Year 2. Prepare the statement of cash flows for Year 1 and Year 2. Note: Amounts to be deducted 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_2

Step: 3

blur-text-image_3

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

Bookkeeping And Auditing A Career Guide

Authors: Harry Watts

1st Edition

1639878106, 1639878106

More Books

Students also viewed these Accounting questions

Question

4. Identify the challenges facing todays organizations

Answered: 1 week ago