Problem 13 34A 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 Acquired $54,000 cash from the issue of common stock Paid $13,900 cash in advance for rent The payment was for the period April 1, Year 1, to March 31, Year 2 Performed services for customers on account for $110,000 Incurred operating expenses on account of $44,500 Collected $84,000 cash from accounts receivable Paid $40,000 cash for salary expense Paid $35,600 cash as a partial payment on accounts payable Adjusting Entries Made the adjusting entry for the expired rent (See Event 2 ) Recorded $6,200 of accrued salaries at the end of Year 1 Events for Year 2 Paid $6,200 cash for the salaries accrued at the end of the prior accounting period Performed services for cash of $59,000 Purchased $4,700 of supplies on account Paid $16,200 cash in advance for rent The payment was for one year beginning April 1, Year 2 Performed services for customers on account for $126,000 Incurred operating expenses on account of $60,500 Collected $108,000 cash from accounts receivable Paid $58,000 cash as a partial payment on accounts payable Paid $33,400 cash for salary expense Paid a $10,000 cash dividend to stockholders Adjusting Entries Made the adjusting entry for the expired rent ( Hint Part of the rent was paid in Year 1 ) Recorded supplies expense A physical count showed that $400 of supplies were still on hand CASH, ACCOUNTS RECEIVABLE, PREPAID RENT, ACCOUNTS PAYABLE, SALARIES PAYABLE, COMMON STOCK, RETAINED EARNINGS, SERVICE REVENUE, OPERATING EXPENSE, RENT EXPENSE, SALARIES EXPENSE beg bal (event ) (event ) ENDING BALANCE

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Problem 13-34A 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

Problem 13-34A 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:

Acquired $54,000 cash from the issue of common stock.
Paid $13,900 cash in advance for rent. The payment was for the period April 1, Year 1, to March 31, Year 2.
Performed services for customers on account for $110,000.
Incurred operating expenses on account of $44,500.
Collected $84,000 cash from accounts receivable.
Paid $40,000 cash for salary expense.
Paid $35,600 cash as a partial payment on accounts payable.

Adjusting Entries

Made the adjusting entry for the expired rent. (See Event 2.)
Recorded $6,200 of accrued salaries at the end of Year 1.

Events for Year 2

Paid $6,200 cash for the salaries accrued at the end of the prior accounting period.
Performed services for cash of $59,000.
Purchased $4,700 of supplies on account.
Paid $16,200 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
Performed services for customers on account for $126,000.
Incurred operating expenses on account of $60,500.
Collected $108,000 cash from accounts receivable.
Paid $58,000 cash as a partial payment on accounts payable.
Paid $33,400 cash for salary expense.
Paid a $10,000 cash dividend to stockholders.

Adjusting Entries

Made the adjusting entry for the expired rent. (Hint: Part of the rent was paid in Year 1.)
Recorded supplies expense. A physical count showed that $400 of supplies were still on hand.

CASH, ACCOUNTS RECEIVABLE, PREPAID RENT, ACCOUNTS PAYABLE, SALARIES PAYABLE, COMMON STOCK, RETAINED EARNINGS, SERVICE REVENUE, OPERATING EXPENSE, RENT EXPENSE, SALARIES EXPENSE: