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The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital Improvements occur on January 1
The following transactions pertain to Accounting Solutions Inc. Assume the transactions for the purchase of the computer and any capital Improvements occur on January 1 each year. Year 1 1. Acquired $61,000 cash from the issue of common stock. 2. Purchased a computer system for $26,300. It has an estimated useful life of five years and a $3,540 salvage value. 3. Pald $1,400 sales tax on the computer system. 4. Collected $30,920 In fees from clients. 5. Paid $1,260 In fees for routine maintenance to service the computers. 6. Recorded double-declining-balance depreciation on the computer system for Year 1. Year 2 1. Pald $830 for repairs to the computer system. 2. Bought off-site backup services to maintain the computer system, $1,090. 3. Collected $33,920 In fees from clients. 4. Paid $930 in fees to service the computers. 5. Recorded double-declining-balance depreciation for Year 2. Year 3 1. Pald $3,400 to upgrade the computer system, which extended the total life of the system to six years. The salvage value did not change. 2. Pald $940 In fees to service the computers. 3. Collected $36,150 In fees from clients. 4. Recorded double-declining-balance depreciation for Year 3. Complete this question by entering your answers in the tabs below. Req B4 Cash Flows Req B1 Inc Req A Year 1 Req A Year 2 Req A Year 3 Req B2 Stmt Req B3 Bal Stmt of Changes Sheet Prepare statements of changes in stockholders' equity for Year 1, Year 2, and Year 3. ACCOUNTING SOLUTIONS INC. Statements of Changes in Stockholders' Equity For the Year Ended December 31 Year 1 Year 2 Year 3 Beginning common stock Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity
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