Problem 2 -36A Events for the complete accounting cycles Tous Drilling Company was formed on January 1 201 Events Affecting the 2011 Accounting Period 1 . Acquired cash of $50 000 from the issue of common stock THE WALL 2 . Purchased $800 of supplies on account . 3 . Purchased land that cost $12000 cash . IT | 4 . Paid $800 cash to settle accounts payable created in Event 2 find 5 . Recognized revenue on account of 838 090 HERE 6 . Paid $15000 cash for other operating expenses will Collected $22000 cash from accounts receivable " if it Will Information for 2019 Adjusting Entries last THE I made jolt 91 1 8 . Recognized accrued salaries of $1 290 on December 31 201 1 1 1 9 . Had $200 of supplies on hand at the end of the accounting period CANADA 1 1 1 1 Events Affecting the 2012 Accounting Period HOW 1 . Acquired an additional $19 909 cash from the issue of common stock 2 . Paid $1 200 cash to settle the salaries payable obligation . 3 . Paid $3 600 cash in advance for a lease on office facilities 1 4 . Sold land that had cost $12 090 for $12 MEETING cash | | 5 . Received SS , 400 cash in advance for services to be performed in the future 6 . Purchased $1 000 of supplies on account during the year 7 . Provided services on account of $26 000 . 1 1 8 . Collected $28.000 cash from accounts receivable 9 . Paid a cash dividend of s5 000 to the stockholdersProblem 2 - 32A Identifying land arranging elements on financial statements LO 4 The following ace outs and balances were drawn from the records of Warren Company in CHECK FIGURES December 31 201 1 ITALY WHEN Total Assets 570 650 1 . Net Income $34 , 150 THE Cash Accounts receivable $19 00 Land $1 0 87 000 Cash flow from operating act 500 Insurance expense Dividends 1 100 Beginning retained earnings 7.500 5:000 Beginning common stock OOO 1 1 2 2500 THE Prepaid insurance Service revenue 80 000 Accounts payable 29 000 Cash flow from financing act 5 500 750 5000 Supplies Supplies expense 250 Ending common stock Cash flow from investing act . 17000) 2: 500 42000 Rent expense Other operating expenses Require Use the accounts and balances from Warren Company to construct an income statement , state - ment of changes in stockholders equity , balance sheet , and statement of cash flows ( show only totals for each activity on the statement of cash flows )Information for 2012 Adjusting Entries 2. The advance payment for rental of the office facilities ( see Event 3 ) was made on March I for a one year lease term . 11 . The cash advance for services to be provided in the future was collected on October I Front Of The one year contract started October 1 12 . His 1 50 of supplies on hand at the end of the period 13 . Recognized accrued salaries of $1 800 at the end of the accounting period . 14 . Recognized 5800 of accrued interest revenue Required Identity each event affecting the 201 1 and 2012 accounting periods as asset source ( 1ST . asset use ( ) , asset exchange ( AE ) or clain's ex hange ( CE . Record the effects of each crest under the appropriate general ledger 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 201 1 and 2012 using the vertical statements model
