Events Affecting the Year 2 Accounting Period 1. Acquired $25,000 cash from the issue of common stock 2. Paid $3,700 cash to settle the salaries payable obligation 3. Paid $5,100 cash in advance to lease office space. 4. Sold the land that cost $28,000 for $28,000 cash. 5. Received $6,300 cash in advance for services to be performed in the future, 6. Purchased $1,500 of supplies on account during the year 7. Provided services on account of $37.000 8. Collected $38,000 cash from accounts receivable. 9. Paid a cash dividend of $4,000 to the stockholders. 10. Paid other operating expenses of $24.500. Information for Year 2 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 $800 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $4,400 at the end of the accounting period 15. Recognized $900 of accrued interest revenue alculations Required information COLUMN Event INTENTIONALLY BLANK Bal COWBOYICE CREAM COMPANY Accounting Equation for Year 2 Assets Supplies Propald Interest Rent Land Receivable Accounts Receivable Liabilities Salaries Payable Cash Accounts Payable Stockholders' Equity Common Retained Stock Earnings Uneamed Revenue 1 25.000 3,700 2 3 5.100 25,000 3.700) 15.100) 28,000 6300 11.500 4 28.000 5 6 1500 9 4000) 10 11 12 13 14 000 522 PM o Te to search