7 Part 7 of 7 5.74 points Skipped eBook Print References 1. Acquired $43,000 cash from the issue of common stock. 2. Paid $12,800 cash in advance for rent. The payment was for the period April 1, Year 1, to March 31, Year 2. 3. Performed services for customers on account for $88,000. 4. Incurred operating expenses on account of $39,000. 5. Collected $67,500 cash from accounts receivable. 6. Paid $29,000 cash for salary expense. 7. Paid $31,200 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $4,000 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $4,000 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $37,000. 3. Purchased $3,600 of supplies on account. 4. Paid $12,900 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $104,000. 6. Incurred operating expenses on account of $49,500. 7. Collected $97,000 cash from accounts receivable. 8. Paid $47,000 cash as a partial payment on accounts payable. 9. Paid $32,300 cash for salary expense. 10. Paid a $11,000 cash dividend to stockholders. Adjusting Entries 11. Made the adjusting entry for the expired rent. (Hint Part of the rent was paid in Year 1.) 12. Recorded supplies expense. A physical count showed that $300 of supplies were still on hand. 7 Part 7 of 7 5.74 points Skipped eBook Required information T Accounts Trial Balance Journal i Stmt Changes Sheet Entries Cash Flows Accts Trial Balance Post the Year 2 events to T-accounts. Beg Bal Cash Accounts Receivable Beg. Bal End. Bal. End. Bal. Print Prepaid Rent Supplies Beg. Bal Beg. Bal References Mc End. Bal. End. Bal. Accounts Payable Salaries Payable Beg. Bal Beg Bal End. Bal End. Bal. 8 7 Required information Common Stock Retained Earnings Part 7 of 7 Beg. Bal Beg. Bal 5.74 points End. Bal. End. Bal. Skipped Dividends Service Revenue Beg. Bal. Beg. Bal eBook Print End. Bal. End. Bal. Operating Expenses Rent Expense References Beg. Bal. Beg. Bal Mc End. Bal. End. Bal. Salaries Expense Supplies Expense Beg. Bal Beg. Bal 8 7 Required information. General Journal T Accounts Trial Balance Income Stmt Stmt of Changes Balance Sheet Stmt of Cash Flows Closing Entries Part 7 of 7 5.74 points Prepare a trial balance for Year 2. COLTON ENTERPRISES Trial Balance December 31, Year 2 Skipped Account Titles Debit Credit eBook Print References Totals $ 0 $ 0 Closing T Accts Post Closing Trial Balance 7 Required information General Journal T Accounts Trial Balance Income Stmt Stmt of Changes Balance Sheet Stmt of Cash Flows Closing Entries Closing T Pr Accts Tr Part 7 of 7 5.74 points Skipped eBook Print Prepare an income statement for Year 2. COLTON ENTERPRISES Income Statement For the Year Ended December 31, Year 2 Expenses Total expenses References 0 $ 0