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.
Financial Reporting, Financial Statement Analysis and Valuation
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Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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Problem 20PC: Analyzing Transactions. Using the analytical framework, indicate the effect of the following related...
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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.
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3
%3D
4.
%3D
5.
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6.
%3D
7.
%3D
8.
%3D
9.
10.
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11.
12.
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Totals
< Acctg Equation Year 1
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