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 $42,000 cash from the issue of common stock. 2. Pald $12,700 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 $86,000. 4. Incurred operating expenses on account of $38,500. 5. Collected $66,000 cash from accounts receivable. 6. Pald $28,000 cash for salary expense. 7. Pald $30,800 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $3,800 of accrued salaries at the end of Year 1. Events for Year 2 1. Pald $3,800 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $35,000. 3. Purchased $3,500 of supplies on account. 4. Paid $12,600 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $102,000. 6. Incurred operating expenses on account of $48,500. 7. Collected $96,000 cash from accounts receivable. 8. Pald $46,000 cash as a partial payment on accounts payable. 9. Pald $32,200 cash for salary expense. 10. Pald a $10,000 cash dividend to stockholders. Adjusting Entries 11. Made the adjusting entry for the explred 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. d-1. Prepare an income statement for Year 1. COLTON ENTERPRISES Income Statement For the Year Ended December 31, Year 1 Expenses Total expenses $ 0 0 d-2. Prepare a statement of changes in stockholders' equity for Year 1. COLTON ENTERPRISES Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 S 0 Total stockholders' equity $ 0 d-3. Prepare a balance sheet for Year 1. COLTON ENTERPRISES Balance Sheet As of December 31, Year 1 Assets s 0 Total assets Liabilities S 0 Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity S 0 d-4. Prepare a statement of cash flows for Year 1. (Amounts to be deducted should be indicated by a minus sign.) COLTON ENTERPRISES Statement of Cash Flowe For the Year Ended December 31, Year 1 Cash flows from operating activities: S 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash O Ending cash balance $ 0