THIRD 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 e Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T accounts (If no entry is required for a transaction event, select No journal entry required in the first account field ) View transaction list Journal entry worksheet Record entry to close service revenue Note Enter debits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal e Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T accounts (If no entry is required for a transaction event, select No journal entry required in the first account field ) View transaction list Journal entry worksheet Record entry to close expenses Note Enter debits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal 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 Retained Earnings Service Revenue Beg Bal Beg Bal cl cl cl End Bal End Bal Operating Expenses Rent Expense Beg Bal Beg Bal cl cl End Bal End Bal Salaries Expense Beg Bal cl

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Posted on Aug 13, 2024

THIRD 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.

THIRD 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.

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e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry to close service revenue. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry to close expenses. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal 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. Retained Earnings Service Revenue Beg. Bal. Beg. Bal. cl cl cl End. Bal. End. Bal. Operating Expenses Rent Expense Beg. Bal. Beg. Bal. cl cl End. Bal. End. Bal. Salaries Expense Beg. Bal. cl