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$[$The following information spplles to the questions alsplayed below.$]$

Alcorn Service Company was formed on Jsnusry $1,$ Year $1.$

Events Affecting the Year $1$ Accounting Perlod

Acquired $$66,000$ cssh from the lsaue of common stock.

Purchased $$2,400$ of supplies on account.

Purchased land that cost $$30,000cssh.$

Psid $$2,400$ cash to settie sccounts payable created in Event $2$

Recognized revenue on sccount of $$54,000.$

Psid $$27,000$ cash for other operating expenses.

Collected $$44,000$ cssh from accounts recelvable.

Information for Year $1$ Adjusting Entries

Recognized sccrued salaries of $$3,800$ on December $3,$ Yesr $2$

Had $$800$ of supples on hsnd at the end of the sccounting period.

Events Affecting the Year $2$ Accounting Period

Acquired $$26,000$ cssh from the Issue of common stock.

$2$ Paid $$3,800$ cash to settle the salarles poyable obligation.

Paid $$5,400$ cash in scdvsnce to lease office spoce.

Sold the land that coat $$30,000$ for $$30,000$ cash.

Recelved $$6,600$ cash in advance for services to be performed in the future.

Purchased $$1,600$ of supplies an account during the yesr.

Prowided services on sccount of $$3E,00O.$

Collected $$39,000$ cash from accounts recelvable.

Pald $5$ cssh dividend of $$5,000$ to the stoclholders.

Paid other operating expenses of $$25,500.$

Information for Year $2$ Adjusting Entries

The sdvance payment for rentsl of the office space $($see Event $3)$ was made an March $1$ for a one$-$yesr term.

The cash advance for services to be prowded In the future was colected on October $1($see Event $5).$ The ane$-$year

contract started an October $1.$

Had $$900$ of supples remaining on hand at the end of the period.

Recognized sccrued salarles of $$4,500$ at the end of the accounting perlad.

Recognized $$2,000$ of accrued Interest revenue.

b$-1.$ Prepare sn income statement for Year $1$ and Yesr $2$

b$-2.$ Prepare the statement of chsnges in atocldholders" equlty for Year $1$ snd Year $2$

b$-3.$ Prepsre the balance sheet for Year $1$ and Year $2$

b$-4.$ Prepare the statement of cash flows for Year $1$ snd Yesr $2$ using the verticsl ststements model.

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