! Required information Problem 2-38A (Algo) Events for two complete accounting cycles LO 2-1, 2-2, 2-3, 2-4, 2-5, 2-6, 2-7, 2-8, 2-9 [The following information applies to the questions displayed below.] Alcorn Service Company was formed on January 1, Year 1. Events Affecting the Year 1 Accounting Period 1. Acquired $70,000 cash from the issue of common stock. 2. Purchased $3,200 of supplies on account. 3. Purchased land that cost $38,000 cash. 4. Paid $3,200 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $62,000. 6. Paid $31,000 cash for other operating expenses. 7. Collected $48,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,200 on December 31, Year 1. 9. Had $1,200 of supplies on hand at the end of the accounting period. Che Events Affecting the Year 2 Accounting Period 1. Acquired $30,000 cash from the issue of common stock. 2. Paid $4,200 cash to settle the salaries payable obligation. 3. Paid $6,600 cash in advance to lease office space. 4. Sold the land that cost $38,000 for $38,000 cash. 5. Received $7,800 cash in advance for services to be performed in the future. 6. Purchased $2,000 of supplies on account during the year. 7. Provided services on account of $42,000. 8. Collected $43,000 cash from accounts receivable. 9. Paid a cash dividend of $9,000 to the stockholders. 10. Paid other operating expenses of $29,500. 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 $1,300 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $4,900 at the end of the accounting period. 15. Recognized $1,400 of accrued interest revenue. Problem 2-38A (Algo) Part a Required Identify each event affecting the Year 1 and 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. Complete this question by entering your answers in the tabs below. neck m Acctg Equation Acctg Equation Year 1 Year 2 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 effect appropriate general ledger account headings of the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a Complete this question by entering your answers in the tabs below. Acctg Equation Acctg Equation Year 1 Year 2 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 e under the appropriate general ledger account headings of the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances w sign.) ALCORN SERVICE COMPANY Accounting Equation for Year 1 Event Type of Event Assets Liabilities + Stockholders' Equity Cash Accounts Receivable Prepaid Supplies Land Rent Accounts Payable Salaries Unearned Payable Revenue Common + Stock Retained Earnings 1. 2. ++ 3. = + 4. + 5. 6. + 7. + 8. + 9. Totals Required information Year 1 Year 2 my work 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 e appropriate general ledger account headings of the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minu ALCORN SERVICE COMPANY Accounting Equation for Year 2 Type Assets Event A of Event Liabilities + Accounts Cash Receivable Supplies Prepaid Rent Stockholders' Equity Land Interest Receivable Accounts Payable Bal. Salaries Payable Unearned + Revenue Common Retained Stock Earnings 1. = + 2. + 3. 4. = 5. 6. 7. 8. + 9. 10. + 11. + 12. 13. + 14. =1 + 15. Totals < Prev 3 S 4 of 4 = = H Next > +