Prepare the statement of cash flows for Year 1 and Year 2, using the vertical statements model.
PLEASE HELP SOLVE PART B4 OF THIS QUESTION. THANKS
Alcorn Service Company was formed on January 1, Year 1.
Events Affecting the Year 1 Accounting Period
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Acquired $69,000 cash from the issue of common stock.
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Purchased $3,000 of supplies on account.
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Purchased land that cost $36,000 cash.
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Paid $3,000 cash to settle accounts payable created in Event 2.
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Recognized revenue on account of $60,000.
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Paid $30,000 cash for other operating expenses.
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Collected $47,000 cash from accounts receivable.
Information for Year 1
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Recognized accrued salaries of $4,100 on December 31, Year 1.
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Had $1,100 of supplies on hand at the end of the accounting period.
Events Affecting the Year 2 Accounting Period
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Acquired $29,000 cash from the issue of common stock.
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Paid $4,100 cash to settle the salaries payable obligation.
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Paid $6,300 cash in advance to lease office space.
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Sold the land that cost $36,000 for $36,000 cash.
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Received $7,500 cash in advance for services to be performed in the future.
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Purchased $1,900 of supplies on account during the year.
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Provided services on account of $41,000.
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Collected $42,000 cash from accounts receivable.
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Paid a cash dividend of $8,000 to the stockholders.
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Paid other operating expenses of $28,500.
Information for Year 2 Adjusting Entries
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The advance payment for rental of the office space (see Event 3) was made on March 1 for a one-year term.
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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.
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Had $1,200 of supplies remaining on hand at the end of the period.
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Recognized accrued salaries of $4,800 at the end of the accounting period.
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Recognized $1,300 of accrued interest revenue.
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b-4. Prepare the statement of
cash flows for Year 1 and Year 2, using the vertical statements model.
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