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Events Affecting the Year 2 Accounting Period 1. Acquired $15,000 cash from the issue of common stock. 2. Paid $3,600 cash to settle the salaries payable obligation. 3. Paid $9,000 cash in advance to lease office space. 4. Sold the land that cost $14,000 for $14,000 cash. 5. Received $6,000 cash in advance for services to be performed in the future. 6. Purchased $2,400 of supplies on account during the year. 7. Provided services on account of $24,500. 8. Collected $12,600 cash from accounts receivable. 9. Paid a cash dividend of $2,000 to the stockholders. 10. Paid other operating expenses of $2,850. 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 $300 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $4,800 at the end of the accounting period. 15. Recognized $500 of accrued interest revenue. Identify each event affecting the Year 1 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.) Identify each event affecting the 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 general ledger account headings of the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) Prepare an income statement for Year 1 and Year 2. (Do not round intermediate calculations.) 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, using the vertical statements model. (Cash outflows should be indicated with a minus sign.)