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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

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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 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. Paid $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. Paid $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. Paid $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. Paid $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 A Year 2 Req A Year 3 Req B1 Inc Req B2 Stimt Req 83 Bal Req 84 Cash Req A Year 1 Stmt of Changes Sheet Flows Record the above transactions in a horizontal statements model for Year 2. (In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), a financing activity (FA), or net change in cash (NC). If an element is not affected by the event, leave the cell blank. Enter any decreases to account balances and cash outflows with a minus sign. Not all cells will require entry.) Show less A ACCOUNTING SOLUTIONS INC. Horizontal Statements Model - Year 2 Balance Sheet Income Statement Event Assets Stockholders' Equity Statement of Year 2 Cash Flows Cash BV + Common Retained Revenue Expense = Net Income + Equipment Stock Earnings Bal. + 1. + 2. + 4 5. Bal + +

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