Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $54,000 cash from the issue of common stock. 2. Paid $13,900 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 $110,000. 4. Incurred operating expenses on account of $44,500. 5. Collected $84,000 cash from accounts receivable. 6. Paid $40,000 cash for salary expense. 7. Paid $35,600 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $6,200 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $6,200 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $59,000. 3. Purchased $4,700 of supplies on account. 4. Paid $16,200 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $126,000. 6. Incurred operating expenses on account of $60,500. 7. Collected $108,000 cash from accounts receivable. 8. Paid $58,000 cash as a partial payment on accounts payable. 9. Paid $33,400 cash for salary expense. 10. Paid a $10,000 cash dividend to stockholders. Prepare a trial balance for Year 2. COLTON ENTERPRISES Trial Balance December 31, Year 2 Account Titles Debit Credit Totals $ $ 0 $ 0 g. Repeat parts a through for Year 2. Complete this question by entering your answers in the tabs below. Stmt of Cash Flows Closing Entries Closing T Accts Post Closing Trial Balance General Income T Accounts Trial Balance Stmt of Balance Journal Stmt Changes Sheet Prepare a statement of changes in stockholders' equity for Year 2. COLTON ENTERPRISES Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 0 Total stockholders' equity $ 0 Prey WS of 7 Next Record the entries to close the Year 2 temporary accounts to Retained Earnings in the general journal. (If nc transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the closure of service revenue. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 D View transaction list Journal entry worksheet > Record the closure of the dividends account. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Required information General Journal T Accounts Trial Balance Income Stmt Stmt of Changes Balance Sheet Stmt of Cash Flows Closing Entries Closing T Accts Post Closing Trial Balance Post the closing entries for Year 2 to the T-accounts. Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Propald Rent Supplies Beg. Bal Bog. Bat. End. Bal End. Bal. Accounts Payable Common Stock Beg. Bal Beg. Bal End. Bal. End. Bal.
