Alcorn Service Company was formed on January 1, Year 1.
Events Affecting the Year 1 Accounting Period
1. Acquired $66,000 cash from the issue of common stock.
2. Purchased $2,400 of supplies on account.
3. Purchased land that cost $30,000 cash.
4. Paid $2,400 cash to settle accounts payable created in Event 2.
5. Recognized revenue on acount of $54,000
6. Paid $27,000 cash for other operating expenses.
7. Collected $44,000 cash from accounts receivable.
Information for Year 1 Adjusting Entries
8. Recognized accrued salaries of $3,800 on December 31, Year 1.
9. Had $800 of supplies on hand at the end of the accounting period.
Events Affecting the 2019 Accounting Period
1. Acquired $26,000 cash from the issue of common stock.
2. Paid $3,800 cash to settle the salaries payable obligation.
3. Paid $5,400 cash in advance to lease office space.
4. Sold the land that cost $30,000 for $30,000 cash.
S. Received $6,600 cash in advance for services to be performed in the future.
6. Purchased $1,600 of supplies on account during the year.
7. Provided services on account of $38,000.
8. Collected $39,000 cash from accounts receivable.
9. Paid a cash dividend of $5,000 to the stockholders.
10. Paid other operating expenses of $25,500.
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 $900 of supplies remaining on hand at the end of the period.
14. Recognized accrued salaries of $4,500 at the end of the accounting period.
15. Recognized $1,000 of accrued interest revenue.
Required:
Identify each event affecting the 2018 accounting periods as asset source (AS), asset use (NJ), asset exchange (AE), or claims exchange (CC).
