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SIXTH PART Colton Enterprises experienced the following events for Year 1, the first year of operation: Acquired $55,000 cash from the issue of common stock.
SIXTH PART
Colton Enterprises experienced the following events for Year 1, the first year of operation:
- Acquired $55,000 cash from the issue of common stock.
- Paid $14,000 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 $112,000.
- Incurred operating expenses on account of $45,000.
- Collected $85,500 cash from accounts receivable.
- Paid $41,000 cash for salary expense.
- Paid $36,000 cash as a partial payment on accounts payable.
Adjusting Entries
- Made the adjusting entry for the expired rent. (See Event 2.)
- Recorded $6,400 of accrued salaries at the end of Year 1.
Events for Year 2
- Paid $6,400 cash for the salaries accrued at the end of the prior accounting period.
- Performed services for cash of $61,000.
- Purchased $4,800 of supplies on account.
- Paid $16,500 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
- Performed services for customers on account for $128,000.
- Incurred operating expenses on account of $61,500.
- Collected $109,000 cash from accounts receivable.
- Paid $59,000 cash as a partial payment on accounts payable.
- Paid $33,500 cash for salary expense.
- Paid a $11,000 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 $450 of supplies were still on hand.
1-Record the closure of service revenue.
2-Record the closure of expenses.
3-Record the payment of dividends.
View transaction list Journal entry worksheet Record the closure of service revenue. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31 Record entry Clear entry View general journal Cash Accounts Receivable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Prepaid Rent Supplies Beg. Bal. Beg. Bal. End. Bal. End. Bal. Common Stock Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Dividends Retained Earnings Beg. Bal. Beg. Bal. cl cl cl cl End. Bal. End. Bal. Service Revenue Operating Expenses Beg. Bal. Beg. Bal. cl cl End. Bal. End. Bal. Rent Expense Salaries Expense Beg. Bal. Beg. Bal. cl cl End. Bal. End. Bal. Supplies Expense Beg. Bal. cl End. Bal. COLTON ENTERPRISES Post-Closing Trial Balance December 31, Year 2 Account Titles Debit Credit Totals $ 0 $ 0Step by Step Solution
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