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. Paid $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. Paid $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. Pald $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. d-1. Prepare an income statement for Year 1. COLTON ENTERPRISES Income Statement For the Year Ended December 31, Year 1 Expenses Total expenses 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 $ 0 0 0 0 Total stockholders' equity $ d-3. Prepare a balance sheet for Year 1. COLTON ENTERPRISES Balance Sheet As of December 31, Year 1 Assets $ 0 Total assets Liabilities Total liabilities $ 0 Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ $ 0 04. 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: $ Not cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 $ 0 Ending cash balance