Required information 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: 1. Acquired $50,000 cash from the issue of common stock. 2. Paid $13,500 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 $102,000. 4. Incurred operating expenses on account of $42,500. 5. Collected $78,000 cash from accounts receivable. 6. Paid $36,000 cash for salary expense. 7. Paid $34,000 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $5,400 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $5,400 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $51,000. 3. Purchased $4,300 of supplies on account. 4. Paid $15,000 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $118,000. 6. Incurred operating expenses on account of $56,500. 7. Collected $104,000 cash from accounts receivable. 8. Paid $54,000 cash as a partial payment on accounts payable. 9. Paid $33,000 cash for salary expense. 10. Paid a $12,000 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 $650 of supplies were still on hand. g. Repeat parts a through ffor Year 2. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Statement of Cash Flows only, items to be deducted must be indicated with a negative amount.) Answer is complete but not entirely correct. Event General Journal Debit Credit No A 1 Salaries payable 5,400 Cash 5,400 B 2 Cash 51,000 Service revenue 51,000 3 4,300 Supplies No journal entry required X 4,300 D 4 15,000 Prepaid rent Cash 15,000 E 5 Accounts receivable 118,000 Service revenue 118,000 F 6 56,500 Operating expenses Accounts payable 56,500 G 7 104,000 Cash Accounts receivable 104.000 8 54,000 Accounts payable Cash 54,000 OOOO OOOOOOOO - 9 33,000 Salaries expense Cash 33,000 J 10 12,000 Dividends Cash 12,000 11 13,500 Prepaid rent Cash 15,000 X L 12 650 Supplies Cash 4,500 X Answer is not complete. Cash Accounts Receivable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Prepaid Rent Supplies Beg. Bal. Beg. Bal. End. Bal. End. Bal. Accounts Payable Salaries Payable Beg. Bal. Beg. Bal. End Bal. End Bal. Common Stock Retained Earnings Beg. Bal. Beg. Bal. End. Bal. End. Bal. Dividends Service Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Operating Expenses Rent Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries Expense Supplies Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. X Answer is not complete. Credit COLTON ENTERPRISES Trial Balance December 31, Year 2 Account Titles Debit Cash Common stock Accounts receivable Prepaid rent Accounts payable Service revenue Operating expenses Salaries expense Rent expense Totals $ 0 $ 0 X Answer is not complete. COLTON ENTERPRISES Income Statement For the Year Ended December 31, Year 2 Expenses Total expenses 0 0 $ Answer is not complete. COLTON ENTERPRISES Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 $ 0 0 0 Total stockholders' equity $ Answer is not complete. COLTON ENTERPRISES Balance Sheet As of December 31, Year 2 Assets $ 0 Total assets Liabilities $ 0 Total liabilities Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 X Answer is not complete. COLTON ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 Ending cash balance $ 0
