Events Affecting the Year 1 Accounting Period 1. Acquired $77,000 cash from the issue of common stock. 2. Purchased $4,600 of supplies on account. 3. Purchased land that cost $52,000 cash. 4. Paid $4,600 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $76,000. 6. Paid $38,000 cash for other operating expenses. 7. Collected $55,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,900 on December 31, Year 1. 9. Had $1,900 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $37,000 cash from the issue of common stock. 2. Paid $4,900 cash to settle the salaries payable obligation. 3. Paid $8,700 cash in advance to lease office space. 4. Sold the land that cost $52,000 for $52,000 cash. 5. Received $9,900 cash in advance for services to be performed in the future. 6. Purchased $2,700 of supplies on account during the year. 7. Provided services on account of $49,000. 8. Collected $50,000 cash from accounts receivable. 9. Paid a cash dividend of $9,000 to the stockholders. 10. Paid other operating expenses of $36,500. 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- 12. The cash advance for services to be provided in the future was collected on October 1 (see Event contract started on October 1. 13. Had $2,000 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $5,600 at the end of the accounting period. 15. Recognized $2,100 of accrued interest revenue.
Events Affecting the Year 1 Accounting Period 1. Acquired $77,000 cash from the issue of common stock. 2. Purchased $4,600 of supplies on account. 3. Purchased land that cost $52,000 cash. 4. Paid $4,600 cash to settle accounts payable created in Event 2. 5. Recognized revenue on account of $76,000. 6. Paid $38,000 cash for other operating expenses. 7. Collected $55,000 cash from accounts receivable. Information for Year 1 Adjusting Entries 8. Recognized accrued salaries of $4,900 on December 31, Year 1. 9. Had $1,900 of supplies on hand at the end of the accounting period. Events Affecting the Year 2 Accounting Period 1. Acquired $37,000 cash from the issue of common stock. 2. Paid $4,900 cash to settle the salaries payable obligation. 3. Paid $8,700 cash in advance to lease office space. 4. Sold the land that cost $52,000 for $52,000 cash. 5. Received $9,900 cash in advance for services to be performed in the future. 6. Purchased $2,700 of supplies on account during the year. 7. Provided services on account of $49,000. 8. Collected $50,000 cash from accounts receivable. 9. Paid a cash dividend of $9,000 to the stockholders. 10. Paid other operating expenses of $36,500. 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- 12. The cash advance for services to be provided in the future was collected on October 1 (see Event contract started on October 1. 13. Had $2,000 of supplies remaining on hand at the end of the period. 14. Recognized accrued salaries of $5,600 at the end of the accounting period. 15. Recognized $2,100 of accrued interest revenue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Hello can I please have some help on this? I uploaded this question with Accounting Equation for Year 1. This one I need the Accounting Equation for Year 2. Thank you so much!
Transcribed Image Text:Events Affecting the Year 1 Accounting Period
1. Acquired $77,000 cash from the issue of common stock.
2. Purchased $4,600 of supplies on account.
3. Purchased land that cost $52,000 cash.
4. Paid $4,600 cash to settle accounts payable created in Event 2.
5. Recognized revenue on account of $76,000.
6. Paid $38,000 cash for other operating expenses.
7. Collected $55,000 cash from accounts receivable.
Information for Year 1 Adjusting Entries
8. Recognized accrued salaries of $4,900 on December 31, Year 1.
9. Had $1,900 of supplies on hand at the end of the accounting period.
Events Affecting the Year 2 Accounting Period
1. Acquired $37,000 cash from the issue of common stock.
2. Paid $4,900 cash to settle the salaries payable obligation.
3. Paid $8,700 cash in advance to lease office space.
4. Sold the land that cost $52,000 for $52,000 cash.
5. Received $9,900 cash in advance for services to be performed in the future.
6. Purchased $2,700 of supplies on account during the year.
7. Provided services on account of $49,000.
8. Collected $50,000 cash from accounts receivable.
9. Paid a cash dividend of $9,000 to the stockholders.
10. Paid other operating expenses of $36,500.
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 $2,000 of supplies remaining on hand at the end of the period.
14. Recognized accrued salaries of $5,600 at the end of the accounting period.
15. Recognized $2,100 of accrued interest revenue.
Transcribed Image Text:COWBOY ICE CREAM COMPANY
Accounting Equation for Year 2
Assets
Liabilities
Stockholders' Equity
%3D
COLUMN
Unearned
Common
Retained
Event INTENTIONALLY
BLANK
Interest
Receivable
Accounts
%3D
Salaries
Prepaid
Rent
Accounts
Cash
Receivable Supplies
Land
Payable
Revenue
Stock
Earnings
Payable
%3D
Bal.
%3D
1.
2.
%3D
3
%3D
4.
%3D
5.
%3D
6.
%3D
7.
%3D
8.
%3D
9.
10.
%3D
11.
12.
%3D
13.
14
%3D
15.
Totals
< Acctg Equation Year 1
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 2 steps with 1 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