rurcnasea lana mat cost $\frac{\text{\$}}{{?}_{\frac{?}{?}}{?}_{,}}$ casn.

Paid $$1,600$ cash to settle accounts payable created in Event $2.$

Recognized revenue on account of $$46,000.$

Paid $$23,000$ cash for other operating expenses.

Collected $$40,000$ cash from accounts receivable.

Information for Year $1$ Adjusting Entries

Recognized accrued salaries of $$3,400$ on December $31,$ Year $1.$

Had $$400$ of supplies on hand at the end of the accounting period.

Events Affecting the Year $2$ Accounting Period

Acquired $$22,000$ cash from the issue of common stock.

Paid $$3,400$ cash to settle the salaries payable obligation.

Paid $$4,200$ cash in advance to lease office space.

Sold the land that cost $$22,000$ for $$22,000$ cash.

Received $$5,400$ cash in advance for services to be performed in the future.

Purchased $$1,200$ of supplies on account during the year.

Provided services on account of $$34,000.$

Collected $$35,000$ cash from accounts receivable.

Paid a cash dividend of $$7,000$ to the stockholders.

Paid other operating expenses of $$21,500.$

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$-$y

The cash advance for services to be provided in the future was collected on October $1($see Event

contract started on October $1.$

Had $$500$ of supplies remaining on hand at the end of the period.

Recognized accrued salaries of $$4,100$ at the end of the accounting period.

Recognized $$600$ of accrued interest revenue.

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.