Please help with completing the statement of changes in stockholder's equity and cash flow. Need to only answer only the parts that are marked with a red x on The statement of changes in stockholders equity and on The Statement of Cash Flow. Include all work/calculations. All green checks indicate correct answer

Alcorn Service Company was formed on January 1, 2018.

Events Affecting the 2018 Accounting Period

1. Acquired $72,000 cash from the issue of common stock.

2. Purchased $3,600 of supplies on account.

3. Purchased land that cost $42,000 cash.

4. Paid $3,600 cash to settle accounts payable created in Event 2.

5. Recognized revenue on account of $66,000.

6. Paid $33,000 cash for other operating expenses.

7. Collected $50,000 cash from accounts receivable.

Information for 2018 Adjusting Entries

8. Recognized accrued salaries of $4,400 on December 31, 2018.

9. Had $1,400 of supplies on hand at the end of the accounting period.

Events Affecting the 2019 Accounting Period

1. Acquired $32,000 cash from the issue of common stock.

2. Paid $4,400 cash to settle the salaries payable obligation.

3. Paid $7,200 cash in advance to lease office space.

4. Sold the land that cost $42,000 for $42,000 cash.

5. Received $8,400 cash in advance for services to be performed in the future.

6. Purchased $2,200 of supplies on account during the year.

7. Provided services on account of $44,000.

8. Collected $45,000 cash from accounts receivable.

9. Paid a cash dividend of $4,000 to the stockholders.

10. Paid other operating expenses of $31,500.

Information for 2019 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 $1,500 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.

Instructions:

Identify each event affecting the 2018 and 2019 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. Then:

1. b-1. Prepare an income statement for 2018 and 2019.

2. b-2. Prepare the statement of changes in stockholders equity for 2018 and 2019.

3. b-3. Prepare the balance sheet for 2018 and 2019.

4. b-4. Prepare the statement of cash flows for 2018 and 2019, using the vertical statements model.

Accounting Equation for 2018 Assets Liabilities + Event Type of Event Cash Accounts Receivable Supplies Prepaid Rent Land Accounts Payable 0 Salaries Payable Unearned Revenue + Stockholders' Equity Common Retained Stock Earnings 72,000 0 1. AS 72,000 0 0 0 0 = 0 0 + 2. AS 0 0 3,600 0 0 11 3,600 0 0 + 0 0 3. AE 0 0 0 42,000 = 0 0 0 + 0 0 (42,000) (3,600) 4. AU 0 0 0 0 (3,600) 0 0 + 0 0 5. AS 0 66,000 0 0 0 - 0 0 0 + 0 66,000 6. AU 0 0 0 0 0 0 0 + 0 (33,000) (33,000) 50,000 7. AE (50,000) 0 0 0 0 0 0 + 0 0 8. CE 0 0 0 0 0 0 4,400 0 0 9. AU 0 0 0 0 - 0 0 0 + + + (2,200) 1,400 0 (4,400) (2,200) 26,400 Totals 43,400 16,000 0 42,000 II 0 4,400 0 72,000 ALCORN SERVICE COMPANY Accounting Equation for 2019 Assets + Event Type of Event Cash Supplies Accounts Receivable 16,000 Prepaid Rent Land Interest Receivable Accounts Payable 0 Liabilities Salaries Payable 4,400 Unearned Revenue Stockholders' Equity Common Retained Stock Earnings 72,000 26,400 Bal. 43,400 1,400 0 42,000 0 + o o o o o 1. AS 0 0 0 II 0 0 + 32,000 0 2. AU 0 0 0 0 0 (4,400) 0 + 0 0 32,000 (4,400) (7,200) 42,000 3. AE 0 7,200 0 0 0 0 0 + 0 0 o o o o 4. AE 0 (42,000) 0 0 0 + 0 0 o o 5. AS 8,400 0 0 0 0 8,400 0 0 O O O O 6. AS 0 0 2,200 0 0 2,200 0 0 0 7. AS 0 0 0 0 0 0 0 + 0 44,000 44,000 (45,000) 8. AE 0 0 0 o 0 0 0 + 0 0 9. AU 45,000 (4,000) |(31,500) 0 0 0 0 0 0 0 + 0 Oo 10. AU 0 0 0 0 0 11. AU >> 0 0 o o o (6,000) O O O 0 0 0 + 0 12. CE 0 0 ooooo 0 0 0 (2,100) + 0 OOOOOO (4,000) (31,500) (6,000) 2,100 (2,100) (5,100) 1,600 25,400 13. AU 0 0 o o o (2,100) 0 0 0 0 0 + 0 14. CE 0 0 0 0 0 5,100 0 + 0 15. AS 0 0 0 0 0 1,600 0 0 0 + 0 Totals 123,700 15,000 1,500 1,200 0 1,600 2,200 5,100 6,300 + 104,000 ALCORN SERVICE COMPANY Income Statements For the Years Ended December 31, 2018 and 2019 2018 2019 $ 66,000 $ $ 46,100 Service revenue Interest revenue 0 1,600 0 0 Total revenue 66,000 47,700 (33,000) Expenses Operating expenses Supplies expense Salaries expense Rent expense (2,200) 4,400 (31,500) (2,100) 5,100 (6,000) 0 0 0 Total expenses (30,800) 35,200 (34,500) 13,200 Net income $ $ ALCORN SERVICE COMPANY Statement of Changes in Stockholders' Equity For the Years Ended December 31, 2018 and 2019 2018 2019 $ 0 $ 72,000 Beginning common stock Plus: Stock issued 72,000 32,000 72,000 104,000 Ending common stock Beginning retained earnings Plus: Net income Less: Dividend $ 0 26,400 35,200 x 13,200 X 0 (4,000) 35,200 35,600 $ $ 107,200 139,600 Ending retained earnings Total stockholders' equity ALCORN SERVICE COMPANY Balance Sheets As of December 31, 2018 and 2019 2018 2019 Assets Cash $ 43,400 $ 123,700 Accounts receivable 16,000 15,000 Interest receivable 0 1,600 1,400 Supplies Prepaid rent Land 1,500 1,200 42,000 0 0 0 Total assets $ 102,800 $ 143,000 $ 0 $ 2,200 Liabilities Accounts payable Salaries payable Unearned revenue 4,400 5,100 0 6,300 0 0 Total liabilities 4,400 13,600 Stockholders' Equity Common stock 72,000 104,000 Retained earnings 26,400 25,400 0 0 98,400 129,400 Total stockholders' equity Total liabilities and stockholders' equity $ 102,800 $ 143,000 ALCORN SERVICE COMPANY Statements of Cash Flows For the Years Ended December 31, 2018 and 2019 2018 2019 Cash flows from operating activities Cash received from customers $ 50,000 $ 12,100 X Cash payment for expenses (36,600) (43,100) 0 0 13,400 (31,000) Net cash flow from operating activities Cash flows from investing acivities Cash payment for land Cash proceeds from sale of land 0 (42,000) 0 42,000 0 $ 0 (42,000) 42,000 Net cash flow from investing activities Cash flows from financing activities Cash receipt from stock issue Cash payment for dividends 72,000 32,000 (4,000) 0 0 0 72,000 28,000 43,400 39,000 Net cash flow from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 43,400 $ 82,400 $ 43,400