Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period 1. Acquired $65,000 cash from the issue of common stock. 2. Purchased $2,200 of supplies on account. 3. Purchased land that cost $28,000 cash. 4. Paid $2,200 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $52,000. 6. Paid $26,000 cash for other operating expenses. 7. Collected $43,000 cash from accounts receivable. Information for 2018 Adjusting Entries 8. Recognized accrued salaries of $3,700 on December 31, 2018. 9. Had $700 of supplies on hand at the end of the accounting period. Events Affecting the 2019 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 2019 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.
Alcorn Service Company was formed on January 1, 2018. Events Affecting the 2018 Accounting Period 1. Acquired $65,000 cash from the issue of common stock. 2. Purchased $2,200 of supplies on account. 3. Purchased land that cost $28,000 cash. 4. Paid $2,200 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $52,000. 6. Paid $26,000 cash for other operating expenses. 7. Collected $43,000 cash from accounts receivable. Information for 2018 Adjusting Entries 8. Recognized accrued salaries of $3,700 on December 31, 2018. 9. Had $700 of supplies on hand at the end of the accounting period. Events Affecting the 2019 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 2019 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need both 2018 and 2019 table answered. Previous question submitted for same problem could not see full diagram of the solution provided. Please make both tables completely visible to enter all information provided inputted correctly in the right column.
Transcribed Image Text:b-1. Prepare an income statement for 2018 and 2019.
b-2. Prepare the statement of changes in stockholders' equity for 2018 and 2019.
b-3. Prepare the balance sheet for 2018 and 2019.
b-4. Prepare the statement of cash flows for 2018 and 2019, using the vertical statements model.
Complete this question by entering your answers in the tabs below.
Req B1
Req B2
Req B3
Req B4
Prepare an income statement for 2018 and 2019. (Do not round intermediate calculations.)
ALCORN SERVICE COMPANY
Income Statements
For the Years Ended December 31, 2018 and 2019
2018
2019
Total revenue
Expenses
Total expenses
< Req B1
Req B2 >
![Required information
[The following information applies to the questions displayed below.]
Alcorn Service Company was formed on January 1, 2018.
Events Affecting the 2018 Accounting Period
1. Acquired $65,000 cash from the issue of common stock.
2. Purchased $2,200 of supplies on account.
3. Purchased land that cost $28,000 cash.
4. Paid $2,200 cash to settle accounts payable created in Event 2.
5. Recognized revenue on account of $52,000.
6. Paid $26,000 cash for other operating expenses.
7. Collected $43,000 cash from accounts receivable.
Information for 2018 Adjusting Entries
8. Recognized accrued salaries of $3,700 on December 31, 2018.
9. Had $700 of supplies on hand at the end of the accounting period.
Events Affecting the 2019 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 2019 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8151a55-1f97-4293-9574-706e6f6ba5ac%2F96178859-4221-49b3-accb-298ab8d0ccca%2F017szsn_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Alcorn Service Company was formed on January 1, 2018.
Events Affecting the 2018 Accounting Period
1. Acquired $65,000 cash from the issue of common stock.
2. Purchased $2,200 of supplies on account.
3. Purchased land that cost $28,000 cash.
4. Paid $2,200 cash to settle accounts payable created in Event 2.
5. Recognized revenue on account of $52,000.
6. Paid $26,000 cash for other operating expenses.
7. Collected $43,000 cash from accounts receivable.
Information for 2018 Adjusting Entries
8. Recognized accrued salaries of $3,700 on December 31, 2018.
9. Had $700 of supplies on hand at the end of the accounting period.
Events Affecting the 2019 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 2019 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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education