Problem 2-6 (Algo) Accounting cycle [LO2-3, 2-4, 2-5, 2-6, 2-7, 2-8] The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances: Account Title Cash Accounts receivable Debits Credits 32,300 12,000 Equipment 19,000 Accumulated depreciation 5,700 Salaries payable 7,000 Common stock 43,000 Retained earnings 7,600 Total 63,300 63,300 The following is a summary of the transactions for the year: a. Service revenue, $110,000, of which $33,000 was on account and the balance was received in cash. b. Collected on accounts receivable, $23,200. c. Issued shares of common stock in exchange for $9,500 in cash. d. Paid salaries, $40,000 (of which $7,000 was for salaries payable at the end of the prior year). e. Paid miscellaneous expense for various items, $21,600. f. Purchased equipment for $12,000 in cash. g. Paid $2,625 in cash dividends to shareholders. 1. Accrued salaries at year-end amounted to $800. 2. Depreciation for the year on the equipment is $1,900. 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 flows for Year 1 and Year 2, using the vertical statements model. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Req B3 Req B4 Prepare an income statement for Year 1 and Year 2. (Do not round intermediate calculations.) ALCORN SERVICE COMPANY Income Statements For the Years Ended December 31, Year 1 and Year 2 Total revenue Expenses Year 1 Year 2 0 0 Total expenses 0 0 0 $ Req B1 Req B2 > 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 flows for Year 1 and Year 2, using the vertical statements model. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Req B3 Req B4 Prepare the statement of changes in stockholders' equity for Year 1 and Year 2. ALCORN SERVICE COMPANY Statement of Changes in Stockholders' Equity For the Years Ended December 31, Year 1 and Year 2 Beginning common stock Ending common stock Beginning retained earnings Year 1 Year 2 0 0 Ending retained earnings 0 0 Total stockholders' equity $ 0 $ 0 < Req B1 Req B3 > 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 flows for Year 1 and Year 2, using the vertical statements model. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Req B3 Req B4 Prepare the balance sheet for Year 1 and Year 2. ALCORN SERVICE COMPANY Balance Sheets As of December 31, Year 1 and Year 2 Assets Year 1 Year 2 Total assets $ 0 $ 0 Liabilities Total liabilities Stockholders' Equity 0 0 Total stockholders' equity 0 0 Total liabilities and stockholders' equity $ 0 $ 0 < Req B2 Req B4 > 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 flows for Year 1 and Year 2, using the vertical statements model. Complete this question by entering your answers in the tabs below. Req B1 Req B2 Req B3 Req B4 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.) ALCORN SERVICE COMPANY Statements of Cash Flows For the Years Ended December 31, Year 1 and Year 2 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities Net change in cash Ending cash balance Year 1 Year 2 0 0 0 0 0 0 0 H $ 0 $ 0 < Req B3 Req B4 >