Events Affecting the Year 1 Accounting Period 1. Acquired $80,000 cash from the issue of common...

 

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Events Affecting the Year 1 Accounting Period 1. Acquired $80,000 cash from the issue of common stock. 2. Purchased $5,200 of supplies on account. 3. Purchased land that cost $58,000 cash. 4. Paid $5,200 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $82,000. 6. Paid $41,000 cash for other operating expenses. 7. Collected $58,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $5,200 on December 31, Year 1. 9. Had $2,200 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $40,000 cash from the issue of common stock. 2. Paid $5,200 cash to settle the salaries payable obligation. 3. Paid $9,600 cash in advance to lease office space. 4. Sold the land that cost $58,000 for $58,000 cash. 5. Received $10,800 cash in advance for services to be performed in the future. 6. Purchased $3,000 of supplies on account during the year. 7. Provided services on account of $52,000. 8. Collected $53,000 cash from accounts receivable. 9. Paid a cash dividend of $6,000 to the stockholders. 10. Paid other operating expenses of $39,500. 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 contract started on October 1. 13. Had $2,300 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $5,900 at the end of the accounting period. 15. Recognized $2,400 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. Events Affecting the Year 1 Accounting Period 1. Acquired $80,000 cash from the issue of common stock. 2. Purchased $5,200 of supplies on account. 3. Purchased land that cost $58,000 cash. 4. Paid $5,200 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $82,000. 6. Paid $41,000 cash for other operating expenses. 7. Collected $58,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $5,200 on December 31, Year 1. 9. Had $2,200 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $40,000 cash from the issue of common stock. 2. Paid $5,200 cash to settle the salaries payable obligation. 3. Paid $9,600 cash in advance to lease office space. 4. Sold the land that cost $58,000 for $58,000 cash. 5. Received $10,800 cash in advance for services to be performed in the future. 6. Purchased $3,000 of supplies on account during the year. 7. Provided services on account of $52,000. 8. Collected $53,000 cash from accounts receivable. 9. Paid a cash dividend of $6,000 to the stockholders. 10. Paid other operating expenses of $39,500. 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 contract started on October 1. 13. Had $2,300 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $5,900 at the end of the accounting period. 15. Recognized $2,400 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.