Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $45,000 cash from the issue of common stock. 2. Paid $13,000 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 $92,000. 4. Incurred operating expenses on account of $40,000. 5. Collected $70,500 cash from accounts receivable. 6. Paid $31,000 cash for salary expense. 7. Paid $32,000 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $4,400 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $4,400 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $41,000. 3. Purchased $3,800 of supplies on account. 4. Paid $13,500 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $108,000. 6. Incurred operating expenses on account of $51,500. 7. Collected $99,000 cash from accounts receivable. 8. Paid $49,000 cash as a partial payment on accounts payable. 9. Paid $32,500 cash for salary expense. 10. Paid a $13,000 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 $400 of supplies were still on hand.
Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $45,000 cash from the issue of common stock. 2. Paid $13,000 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 $92,000. 4. Incurred operating expenses on account of $40,000. 5. Collected $70,500 cash from accounts receivable. 6. Paid $31,000 cash for salary expense. 7. Paid $32,000 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $4,400 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $4,400 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $41,000. 3. Purchased $3,800 of supplies on account. 4. Paid $13,500 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $108,000. 6. Incurred operating expenses on account of $51,500. 7. Collected $99,000 cash from accounts receivable. 8. Paid $49,000 cash as a partial payment on accounts payable. 9. Paid $32,500 cash for salary expense. 10. Paid a $13,000 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 $400 of supplies were still on hand.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $45,000 cash from the issue of common stock.
2. Paid $13,000 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 $92,000.
4. Incurred operating expenses on account of $40,000.
5. Collected $70,500 cash from accounts receivable.
6. Paid $31,000 cash for salary expense.
7. Paid $32,000 cash as a partial payment on accounts payable.
Adjusting Entries
8. Made the adjusting entry for the expired rent. (See Event 2.)
9. Recorded $4,400 of accrued salaries at the end of Year 1.
Events for Year 2
1. Paid $4,400 cash for the salaries accrued at the end of the prior accounting period.
2. Performed services for cash of $41,000.
3. Purchased $3,800 of supplies on account.
4. Paid $13,500 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
5. Performed services for customers on account for $108,000.
6. Incurred operating expenses on account of $51,500.
7. Collected $99,000 cash from accounts receivable.
8. Paid $49,000 cash as a partial payment on accounts payable.
9. Paid $32,500 cash for salary expense.
10. Paid a $13,000 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 $400 of supplies were still on hand.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad61fb23-6772-4c68-a944-71325d2213c5%2F45bc9cda-ccac-4384-a298-464ad35d7732%2Fg87ki3k_processed.png&w=3840&q=75)
Transcribed Image Text: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 $45,000 cash from the issue of common stock.
2. Paid $13,000 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 $92,000.
4. Incurred operating expenses on account of $40,000.
5. Collected $70,500 cash from accounts receivable.
6. Paid $31,000 cash for salary expense.
7. Paid $32,000 cash as a partial payment on accounts payable.
Adjusting Entries
8. Made the adjusting entry for the expired rent. (See Event 2.)
9. Recorded $4,400 of accrued salaries at the end of Year 1.
Events for Year 2
1. Paid $4,400 cash for the salaries accrued at the end of the prior accounting period.
2. Performed services for cash of $41,000.
3. Purchased $3,800 of supplies on account.
4. Paid $13,500 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
5. Performed services for customers on account for $108,000.
6. Incurred operating expenses on account of $51,500.
7. Collected $99,000 cash from accounts receivable.
8. Paid $49,000 cash as a partial payment on accounts payable.
9. Paid $32,500 cash for salary expense.
10. Paid a $13,000 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 $400 of supplies were still on hand.
Transcribed Image Text:c. Prepare a trial balance for Year 1.
COLTON ENTERPRISES
Trial Balance
December 31, Year 1
Debit
Totals
Account Titles
Cash
Common stock
Prepaid rent
Accounts payable
Accounts receivable
Service revenue
Operating expenses
Salaries expense
Rent expense
Salaries payable
$
Credit
45,000
0 $ 45,000
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