Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I just need help with G. Thank you! Two complete accounting cycles Colton Enterprises experienced the following events for 2016, the first year of operation:
I just need help with G. Thank you!
Two complete accounting cycles Colton Enterprises experienced the following events for 2016, the first year of operation: 1. Acquired $35,000 cash from the issue of common stock. 2. Paid $12,000 cash in advance for rent. The payment was for the period April 1, 2016, to March 31, 2017 3. Performed services for customers on account for $72,000 4. Incurred operating expenses on account of $35,000 5. Collected $55,500 cash from accounts receivable 6. Paid $21,000 cash for salary expense 7. Paid $28,000 cash as a partial payment on accounts payable Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $2,400 of accrued salaries at the end of 2016 Events for 2017 1. Paid $2,400 cash for the salaries accrued at the end of the prior accounting period 2. Performed services for cash of $21,000 3. Purchased $2,800 of supplies on account. 4. Paid $13,200 cash in advance for rent. The payment was for one year beginning April 1, 2017 5. Performed services for customers on account for $88,000 6. Incurred operating expenses on account of $44,500 7. Collected $89,000 cash from accounts receivable 8. Paid $39,000 cash as a partial payment on accounts payable 9. Paid $31,500 cash for salary expense 10. Paid a $10,000 cash dividend to stockholders. Adjusting Entries 11. Made the adjusting entry for the expired rent. (Hint: Part of the rent was paid in 2016.) 12. Recorded supplies expense. A physical count showed that $450 of supplies were still on hand. Required a. Record the events and adjusting entries for 2016 in general journal form. b. Post the 2016 events to T-accounts c. Prepare a trial balance for 2016 d. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for 2016. e. Record the entries to close the 2016 temporary accounts to Retained Earnings in the general journal and post to the T-accounts f. Prepare a post-closing trial balance for December 31, 2016 g. Repeat requirements a through ffor 2017Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started