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Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $52,000 cash from the issue of common stock. 2.
Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $52,000 cash from the issue of common stock. 2. Pald $13,700 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 $106,000. 4. Incurred operating expenses on account of $43,500. 5. Collected $81,000 cash from accounts receivable. 6. Pald $38,000 cash for salary expense. 7. Pald $34,800 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $5,800 of accrued salaries at the end of Year 1. Events for Year 2 1. Pald $5,800 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $55,000. 3. Purchased $4,500 of supplies on account. 4. Pald $15,600 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $122,000. 6. Incurred operating expenses on account of $58,500. 7. Collected $106,000 cash from accounts receivable. 8. Paid $56,000 cash as a partial payment on accounts payable. 9. Paid $33,200 cash for salary expense. 10. Paid a $14,000 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 $750 of supplies were still on hand. c. Prepare a trial balance for Year 1. COLTON ENTERPRISES Trial Balance December 31, Year 1 Account Titles Debit Credit Totals $ 0 $ 0 f. Prepare a post-closing trial balance for December 31, Year 1. COLTON ENTERPRISES Post-Closing Trial Balance December 31, Year 1 Account Titles Debit Credit Totals
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