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 ope-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 $1,500 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $5,100 at the end of the accounting period. 15. Recognized $1,600 of accrued interest revenue. Problem 2-38A (Algo) Part b b-1. Prepare an income statement for Year 1 and Year 2. b-2. Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. b-3. Prepare the balance sheet for Year 1 and Year 2 b-4. Prepare the statement of cash fows for Year 1 and Year 2, using the vertical statements model