Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 13-34A (Algo) Two complete accounting cycles LO 13-1, 13-2, 13-3, 13-4 [The following information applies to the questions displayed below.] Colton Enterprises experienced the

image text in transcribed
image text in transcribed
Problem 13-34A (Algo) Two complete accounting cycles LO 13-1, 13-2, 13-3, 13-4 [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 $36,000 cash from the issue of common stock. 2. Paid $12,100 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 $74,000. 4. Incurred operating expenses on account of $35,500. 5. Collected $57,000 cash from accounts receivable. 6. Paid $22,000 cash for salary expense. 7. Paid $28,400 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $2,600 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $2,600 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $23,000. 3. Purchased $2,900 of supplies on account. 4. Paid $10,800 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $90,000. 6. Incurred operating expenses on account of $42,500. 7. Collected $90,000 cash from accounts receivable. 8. Paid $40,000 cash as a partial payment on accounts payable. 9. Paid $31,600 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 Year 1.) 12. Recorded supplies expense. A physical count showed that $500 of supplies were still on hand. Problem 13-34A (Algo) Part g g. Repeat parts a through ffor 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 intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record cash paid for salaries accrued at the end of the prior accounting period

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

The Sixth International Congress On Accounting 1952

Authors: Various

1st Edition

0367512807, 9780367512804

More Books

Students also viewed these Accounting questions

Question

What is the difference between a phase and a micro constituent?

Answered: 1 week ago

Question

6. Focus on one idea at a time, and avoid digressions.

Answered: 1 week ago

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago