$!$

Required information

iThe raliowing momatian apailes to the questions dispiojed beiow:

Alcorn Service Company was formed on January $1.$ Year $1.$

Events Affecting the Year $1$ Accounting Perlod

Mcquired $$78,000$ cash from the issue of common stock.

Furchased $$4,800$ of supplles on account.

Purchased land that cost $$54,000$ cash.

Paid $$4,800$ cash to settle accounts payable cleated in Event $2$

Recounized revenue on account of $$78,000.$

Pald $$39,000$ cash for other operating expenses.

Calleced $$56,000$ casin from accounts receNable.

Information for Year $1$ Adjusting Entrles

$8.$ Recognized accrued salarles of $$5,000$ on December $31,$ Year $1.$

$9.$ Had $$2000$ of supplles on hand at the end of the accounting period.

Events Affecting the Year $2$ Accounting Perlod

Acqulred $$38,000$ cash from the issue of common stock

Pald $$5,000$ cash to settle the salarles payable oblligation.

Pald $$9,000$ cash in advance to lease office space.

Sold the land that cost $$54,000$ for $$54,000$ cash.

Recelved $$10,200$ cash In advance for services to be performed in the future.

Purchased $$2800$ of supplles on account during the year

Provided services on account of $$50,000$

Collected $$51,000$ cash from accounts recevable.

Pald a cash didend of $$4,000$ to the stockholders.

Pald other aper ating expenses of $$37,500.$

Information for Year $2$ Adjusting Entrles

$11.$ The advance payment for rental of the office space $($see Event $3$ was made on March $1$ for a oneyear term

$12.$ The cash adwance for services to be provided in the future was collecded on Odober $1($see Event $5).$ The one year contract started on October $1.$

$13.$ Had $$2100$ of supplles remaining on hand at the end of the perlod.

$14.$ Recagnized accrued salarles of $$5,700$ at the end of the accounting perlod.

$15.$ Recognized $$2,200$ of accrued interest revenue.

t$4.$ 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.

Feg B$1$

Reg E$2$

Req B$]$

Prepare an income statement for Year $1$ and Year $2.$

Note: Do not round intermediate ealculations,

MLCORN SERULE COMPQNY

Income Statements