Prepare a statement of cash flows for Year 1.

Prepare a statement of cash flows for Year 1.

Prepare a statement of cash flows for Year 2.

Required information [The following information applies to the questions displayed below.] The following transactions pertain to Smith Training Company for Year 1: Jan. 30 Established the business when it acquired $50,000 cash from the issue of common stock. Feb. 1 Paid rent for office space for two years, $15,800 cash. Apr. 10 Purchased $890 of supplies on account. July 1 Received $25,000 cash in advance for services to be provided over the next year. 20 Paid $668 of the accounts payable from April 10. Aug. 15 Billed a customer $9,400 for services provided during August. Sept. 15 Completed a job and received $2,800 cash for services rendered. Oct. 1 Paid employee salaries of $35,000 cash. 15 Received $8,700 cash from accounts receivable. Nov. 16 Billed customers $36,500 for services rendered on account. Dec. 1 Paid a dividend of $600 cash to the stockholders. 31 Adjusted records to recognize the services provided on the contract of July 1. 31 Recorded $2,100 of accrued salaries as of December 31. 31 Recorded the rent expense for the year. (See February 1.) 31 Physically counted supplies; $100 was on hand at the end of the period. Required information {The following information applies to the questions displayed below.) Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $47,000 cash from the issue of common stock. 2. Paid $13,200 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 $96,000. 4. Incurred operating expenses on account of $41,000. 5. Collected $73,500 cash from accounts receivable. 6. Paid $33,000 cash for salary expense. 7. Paid $32,800 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $4,800 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $4,800 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $45,000. 3. Purchased $4,000 of supplies on account. 4. Paid $14,100 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $112,000. 6. Incurred operating expenses on account of $53,500. 7. Collected $101,000 cash from accounts receivable. 8. Paid $51,000 cash as a partial payment on accounts payable. 9. Paid $32,700 cash for salary expense. 10. Paid a $15,000 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 $500 of supplies were still on hand