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 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. 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 $550 of supplies were still on hand d-1. Prepare an income statement for Year 1. Expenses COLTON ENTERPRISES Income Statement For the Year Ended December 31, Year 1 Total expenses in 0 0 d-2. Prepare a statement of changes in stockholders' equity for Year 1. COLTON ENTERPRISES Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 S 0 0 Total stockholders' equity S d-3. Prepare a balance sheet for Year 1. COLTON ENTERPRISES Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 69 $ 0 S 0 d-4. Prepare a statement of cash flows for Year 1. (Enter any decreases to account balances and cash outflows with a minus sign.) COLTON ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flow from financing activities Net change in cash Ending cash balance- $ 0 0