Required information

Problem $2-38$A $($Algo$)$ Events for two complete accounting cycles LO $2-1,2-2,2-3,2-$

$4,2-5,2-6,2-7,2-8,2-9$

$[$The following information applies to the questions displayed below.$]$

Alcorn Service Company was formed on January $1,$ Year $1.$

Events Affecting the Year $1$ Accounting Period

Acquired $$63,000$ cash from the issue of common stock.

Purchased $$1,800$ of supplies on account.

Purchased land that cost $$24,000$ cash.

Paid $$1,800$ cash to settle accounts payable created in Event $2.$

Recognized revenue on account of $$48,000.$

Paid $$24,000$ cash for other operating expenses.

Collected $$41,000$ cash from accounts receivable.

Information for Year $1$ Adjusting Entries

Recognized accrued salaries of $$3,500$ on December $31,$ Year $1.$

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

Events Affecting the Year $2$ Accounting Period

Acquired $$23,000$ cash from the issue of common stock.

Paid $$3,500$ cash to settle the salaries payable obligation.

Paid $$4,500$ cash in advance to lease office space.

Sold the land that cost $$24,000$ for $$24,000$ cash.

Received $$5,700$ cash in advance for services to be performed in the future.

Purchased $$1,300$ of supplies on account during the year.

Provided services on account of $$35,000.$

Collected $$36,000$ cash from accounts receivable.

Paid a cash dividend of $$8,000$ to the stockholders.

Paid other operating expenses of $$22,500.$Problem $2-38$A $($Algo$)$ Part a

Required

Identify each event affecting the Year $1$ and Year $2$ accounting periods as asset source $($AS$),$ asset use $($AU$),$ asset

exchange $($AE$),$ or claims exchange $($CE$).$ Record the effects of each event under the appropriate general ledger

account headings of the accounting equation.Required

Identify each event affecting the Year $1$ and Year $2$ accounting periods as asset source $($AS$),$ asset use $($AU$),$ asset exchange $($AE$),$ or

claims exchange $($CE$).$ Record the effects of each event under the appropriate general ledger account headings of the accounting

equation.

Complete this question by entering your answers in the tabs below.

Acctg Equation Acctg Equation

Year $1$

Year $2$

Identify each event affecting the Year $1$ accounting periods as asset source $($AS$),$ asset use $($AU$),$ asset exchange $($AE$),$ or claims exchange $($CE$).$ Record the effects of each event

under the appropriate general ledger account headings of the accounting equation. $($Do not round intermediate calculations. Enter any decreases to account balances with a minus

sign.$)$Acctg Equation Acctg Equation

Year $1$

Year $2$

Identify each event affecting the Year $2$ accounting periods as asset source $($AS$),$ asset use $($AU$),$ asset exchange $($AE$),$ or claims exchange $($CE$).$ Record the effects of each event un

appropriate general ledger account headings of the accounting equation. $($Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.$)$