Required Informetlon 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. Pald $13,800 cash In advance for rent The payment was for the perlod 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 recelvable 6. Pald $39,000 cash for salary expense 7. Pald $35,200 cash as a partlial payment on accounts payable Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2) 9. Recorded $6,000 of accrued salarles at the end of Year 1 Events for Year 2 1. Pald $6,000 cash for the salarles accrued at the end of the prior accounting perlod. 2. Performed services for cash of $57,000. 3. Purchased $4,600 of supplles on account. 4. Pald $15,900 cash In advance for rent. The payment was for one year beginning Aprll 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 recelvable 8. Pald $57,000 cash as a partial payment on accounts payable 9. Pald $33,300 cash for salary expense 10. Pald a $15,000 cash dividend to stockholders. Adjusting Entrles 11. Made the adjusting entry for the explred rent. (Hint Part of the rent was pald In Year 1.,) 12 Recorded supplles expense. A physical count showed that $800 of supplies were still on hand. b. Post the Year 1 events to T-accounts. Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal Prepaid Rent Accounts Payable Beg. Bal Beg. Bal End. Bal End. Bal Salaries Payable Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Service Revenue Operating Expenses Beg. Bal Beg. Bal End. Bal End. Bal Rent Expense Salaries Expense Beg. Bal Beg. Bal End. Bal End. Bal c. Prepare a trial balance for Year 1. COLTON ENTERPRISES Trial Balance December 31, Year 1 Account Titles Debit Credit Totals Required information d-1. Prepare an Income statement for Year 1 COLTON ENTERPRISES Income Statement For the Year Ended December 31. Year 1 Expenses Total expenses d-2. Prepare a statement of changes Iin stockholders equlty for Year 1 COLTON ENTERPRISES Statement of Changes in Stockholders' Equity For the Year Ended December 31. Year 1 Total stockholders'equity d-3. Prepare a balance sheet for Year 1. COLTON ENTERPRISES Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity 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 Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: 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 Ending cash balance
