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Events Affecting the Year 2 Accounting Period 1. Acquired $15,000 cash from the issue of common stock. 2. Paid $3,600 cash to settle the salaries payable obligation. 3. Paid $9,000 cash in advance to lease office space. 4. Sold the land that cost $14,000 for $14,000 cash. 5. Received $6,000 cash in advance for services to be performed in the future. 6. Purchased $2,400 of supplies on account during the year. 7. Provided services on account of $24,500. 8. Collected $12,600 cash from accounts receivable. 9. Paid a cash dividend of $2,000 to the stockholders. 10. Paid other operating expenses of $2,850. 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 $300 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $4,800 at the end of the accounting period. 15. Recognized $500 of accrued interest revenue. ALCORN SERVICE COMPANY Accounting Equation for Year 2