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ces Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $37,000 cash from the issue of common
ces Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $37,000 cash from the issue of common stock. 2. Paid $12,200 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 $76,000 4. Incurred operating expenses on account of $36,000. 5. Collected $58,500 cash from accounts receivable. 6. Paid $23,000 cash for salary expense. 7. Paid $28.800 cash as a partial payment on accounts payable Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $2.800 of accrued salaries at the end of Year 1 Events for Year 2 43 1. Paid $2.800 cash for the salaries accrued at the end of the prior accounting period 2. Performed services for cash of $25,000. 3. Purchased $3,000 of supplies on account 4. Paid $11,100 cash in advance for rent. The payment was for one year beginning April 1, Year 2 5. Performed services for customers on account for $92,000 6. Incurred operating expenses on account of $43,500 7. Collected $91,000 cash from accounts receivable. 8. Paid $41,000 cash as a partial payment on accounts payable. 9. Paid $31,700 cash for salary expense. 10. Pald 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 $550 of supplies were still on hand. Journal entry worksheet 1 2 Record entry to close service revenue. Note: Enter debits before credits. Date Dec 31 + General Journal Debit Credit 37,000 Record entry Clear entry View general journal < 1 2 Record entry to close expenses. Note: Enter debits before credits. Date Dec. 31 General Journal Debit Credit Record entry Clear entry View general journal Cash Beg. Bal. End. Bal. Beg. Bal. Accounts Receivable End. Bal. Prepar Rent Accounts Payable Beg. Bal Beg. Bal End Bal End. Bal. Salaries Payable Common Stock Beg. Bal Beg. Bal End. Bal. End. Bal. Retained Earnings Service Revenue Beg. Bal Beg. Bal End Bal End. Bal Operating Expenses Rent Expense Beg Bal Beg Bal End Bal Salaries Expense Beg Bal End. Bal End. Bal
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