Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $40,000 cash from the issue of common stock 2.

image text in transcribed
image text in transcribed
Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $40,000 cash from the issue of common stock 2. Paid $12,500 cash in advance for rent. The payment vas for the period April 1, Year 1, to March 31, Year 2. 3. Performed services for customers on account for $82,000. 4. Incurred operating expenses on account of $37,500. 5. Collected $63,000 cash from accounts receivable. 6. Paid $26,000 cash for salaries expense. 7. Paid $30,000 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $3,400 of accrued salaries at the end of Year 1 . Events for Year 2 1. Paid $3,400 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $31,000. 3. Purchased $3,300 of supplies on account. 4. Paid $12,000 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $98,000. 6. Incurred operating expenses on account of $46,500. 7. Collected $94,000 cash from accounts receivable. 8. Paid $44,000 cash as a partial payment on accounts payable. 9. Paid $32,000 cash for salaries 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 $700 of supplies were still on hand. g-1. Record the events and adjusting entries for Year 2 in general journal form. g-2. Post the Year 2 events to T-accounts. (You will also post the closing entries in Req 68 to these T-accounts.) Be sure to include the beginning balances from the post-closing trial balance for Year 1. g-3. Prepare an adjusted Trial Balance. g-4. Prepare an income statement for Year 2. g-5. Prepare a statement of changes in stockholders' equity for Year 2. g-6. Prepare a balance sheet for Year 2. g-7. Prepare a statement of cash flows for Year 2. g-8. Record the entries to close the Year 2 temporary accounts to Retained Earnings in the general journal. g-9. Post the closing entries to the T-accounts. g-10. Prepare a post-closing trial balance for December 31, Year 2. Complete this question by entering your answers in the tabs below. Record the events and adjusting entries for Year 2 in general journal form. (Do not round intern required for a transaction/event, select "No journal entry required" in the first account field.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Beginners

Authors: Warren Piper Ruell

1st Edition

1713479397, 978-1713479390

More Books

Students also viewed these Accounting questions

Question

=+What first impression did this create?

Answered: 1 week ago