Required information Skip to question [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 Acquired $71,000 cash from the issue of common stock. Purchased $3,400 of supplies on account. Purchased land that cost $40,000 cash. Paid $3,400 cash to settle accounts payable created in Event 2. Recognized revenue on account of $64,000. Paid $32,000 cash for other operating expenses. Collected $49,000 cash from accounts receivable. Information for Year 1 Adjusting Entries Recognized accrued salaries of $4,300 on December 31, Year 1. Had $1,300 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period Acquired $31,000 cash from the issue of common stock. Paid $4,300 cash to settle the salaries payable obligation. Paid $6,900 cash in advance to lease office space. Sold the land that cost $40,000 for $40,000 cash. Received $8,100 cash in advance for services to be performed in the future. Purchased $2,100 of supplies on account during the year. Provided services on account of $43,000. Collected $44,000 cash from accounts receivable. Paid a cash dividend of $3,000 to the stockholders. Paid other operating expenses of $30,500. Information for Year 2 Adjusting Entries The advance payment for rental of the office space (see Event 3) was made on March 1 for a one-year term. 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. Had $1,400 of supplies remaining on hand at the end of the period. Recognized accrued salaries of $5,000 at the end of the accounting period. Recognized $1,500 of accrued interest revenue.

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