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. 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 b 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. 2 ok nt 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 ] nces Total revenue Expenses Total expenses Year 1 Year 2 Req B1 Req B2 > 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 Ending retained earnings Total stockholders' equity < Req B1 Req B3 > Assets Total assets Liabilities ormation ALCORN SERVICE COMPANY Balance Sheets As of December 31, Year 1 and Year 2 Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Year 1 Year 2 Prev Next 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 B Prev 4 of 4 Next