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Alcorn Service Company was formed on January 1, 2018.

Events Affecting the 2018 Accounting Period

1. Acquired $80,000 cash from the issue of common stock.

2. Purchased $5,200 of supplies on account.

3. Purchased land that cost $58,000 cash.

4. Paid $5,200 cash to settle accounts payable created in Event 2.

5. Recognized revenue on account of $82,000.

6. Paid $41,000 cash for other operating expenses.

7. Collected $58,000 cash from accounts receivable.

Information for 2018 Adjusting Entries

8. Recognized accrued salaries of $5,200 on December 31, 2018.

9. Had $2,200 of supplies on hand at the end of the accounting period.

Events Affecting the 2019 Accounting Period

1. Acquired $40,000 cash from the issue of common stock.

2. Paid $5,200 cash to settle the salaries payable obligation.

3. Paid $9,600 cash in advance to lease office space.

4. Sold the land that cost $58,000 for $58,000 cash.

5. Received $10,800 cash in advance for services to be performed in the future.

6. Purchased $3,000 of supplies on account during the year.

7. Provided services on account of $52,000.

8. Collected $53,000 cash from accounts receivable.

9. Paid a cash dividend of $6,000 to the stockholders.

10. Paid other operating expenses of $39,500.

Information for 2019 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 $2,300 of supplies remaining on hand at the end of the period.

14. Recognized accrued salaries of $5,900 at the end of the accounting period.

15. Recognized $2,400 of accrued interest revenue.

1. b-1. Prepare an income statement for 2018 and 2019.

2. b-2. Prepare the statement of changes in stockholders equity for 2018 and 2019.

3. b-3. Prepare the balance sheet for 2018 and 2019.

4. b-4. Prepare the statement of cash flows for 2018 and 2019, using the vertical statements model.

Acc Equ 2018 Acc Equ 2019 ------- Identify each event affecting the 2018 accounting periods as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Re under the appropriate general ledger account headings of the accounting equation. (Do not round intermediate calculations. Enter any decreases 1 sign.) ALCORN SERVICE COMPANY Accounting Equation for 2018 Assets + Event Type of Event Supplies Prepaid Rent Liabilities Salaries Payable Land Accounts Pavable Accounts Cash Receivable 80,000 = Unearned Revenue Stockholders' Equity Common Retained Stock Earnings 80,000 1. AS + 5,200 5,200 + 58,000 + (58,000) (5,200) 4. I I (5,200)| + AS AE AU AS AU AE 5. 82,000 + 82,000 6. + (41,000) L L I (41,000) 58,000 (58,000) + 5,200 + 9. (5,200) (2,200) 33,600 2,200 7,400 + Totals | 33,800 24,000 0 58,000 = 0 5 ,200 0 + + 80,000 Type Event of Accounting Equation for 2019 Assets Prepaid Interest Supplies Land Rent Receivable 7,400 0 58,000 Event Liabilities Accounts Salaries Payable Payable of 5,200 Unearned Revenue 0 + Stockholders' Equity Common Retained Stock Earnings 88,000 36,000 40,000 Bal. 1. + - 2. Accounts Cash Receivable 33,800 24,000 40,000 (5,200) (9,600) 58,000 10,800 (5,200) + AS AU AE AE AS AS AS + (58,000) = + I I 10,800| + + 3,000 3,000 + + 52,000 52,000 (53,000) AE + (53,000)| (6,000) (39,500) + (6,000) (39,500) I + AU AU AU AE 11. + + AU (2,300) + 14. 5,900 + AE AS (2,300) (5,900) 2,400 36,700 15. + Totals 29,300 23,000 8,100 8,100 9,600 58,000 (58,000) = 3,000 5,900 10,800 + 128,000 + Complete this question by entering your answers in the tabs below. Req B1 Req B2 Req B3 Req B4 Prepare an income statement for 2018 and 2019. (Do not round intermediate calculations.) ALCORN SERVICE COMPANY Income Statements For the Years Ended December 31, 2018 and 2019 2018 2019 0 0 Total revenue Expenses Total expenses $ 0 0 $ 0 0 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 2018 and 2019. ALCORN SERVICE COMPANY Statement of Changes in Stockholders' Equity For the Years Ended December 31, 2018 and 2019 2018 2019 Beginning common stock 0 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity , 2018 2019 Assets Total assets $ 0 $ Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity ALCORN SERVICE COMPANY Statements of Cash Flows For the Years Ended December 31, 2018 and 2019 2018 Cash flows from operating activities 2019 Net cash flow from operating activities Cash flows from investing acivities Net cash flow from investing activities Cash flows from financing activities Net cash flow from financing activities Net change in cash Ending cash balance $ 0 $ 0