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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:

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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 $53,000 cash from the issue of common stock. 2. Paid $13,800 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 $108,000. 4. Incurred operating expenses on account of $44.000. 5. Collected $82,500 cash from accounts receivable. 6. Paid $39,000 cash for salary expense. 7. Paid $35,200 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $6,000 of accrued salaries at the end of Year 1. Events for Year 2 4 Dair tanah far the eslarise arenal at the end of the rin D are din narind Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $6,000 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $6,000 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $57,000. 3. Purchased $4,600 of supplies on account. 4. Paid $15,900 cash in advance for rent. The payment was for one year beginning April 1. Year 2. 5. Performed services for customers on account for $124,000. 6. Incurred operating expenses on account of $59.500. 7. Collected $107.000 cash from accounts receivable. 8. Pald $57,000 cash as a partial payment on accounts payable. 9. Pald $33,300 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 $800 of supplies were still on hand. Required information Journal entry worksheet Required information Operating Expenses Rent Expense Beg. Bal. Beg. Bal. cl End. Bal. End. Bal. Salaries Expense Beg. Bal. End. Bal. COLTON ENTERPRISES Statement of Cash Flows For the Year Ended December 31, Year 1 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

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