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.
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.
Financial Reporting, Financial Statement Analysis and Valuation
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ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 20PC: Analyzing Transactions. Using the analytical framework, indicate the effect of the following related...
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Need both 2018 & 2019 tables answered. Previous attempt submitted for same question 2018 table was partially visible and fully dispalyed to enter all information provided. There are 2 tables to be solved. Please show full displayed tables.
![[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%2F89801417-896a-489d-83a6-2585bb3998a9%2Fk924gto_processed.png&w=3840&q=75)
Transcribed Image Text:[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.
Transcribed Image Text:Required
Identify each event affecting the 2018 and 2019 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.
Acc Equ 2018 Acc Equ 2019
Identify each event affecting the 2018 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.)
ALCORN SERVICE COMPANY
Accounting Equation for 2018
Assets
Liabilities
Stockholders' Equity
Туре
of
Event
Event
Accounts
Prepaid
Accounts
Salaries
Unearned
Revenue
Common
Stock
Retained
Cash
Supplies
Land
Receivable
Rent
Payable
Payable
Earnings
1.
2.
3.
4.
=
5.
6.
7
+
8
9.
+
Totals
+
< Acc Equ 2018
Аcc Equ 2019 >
+|++
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