Question

Homework Ch 3 Surved 9 Requirea information [The following information applies to the questions displayed below.] Colton Enterprises experienced the following events for Year 1, the first year of operation: Part 4 of 5 1. Acquired $53,000 cash from the issue of common stock. 2. Paid $13,800 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 $108,000. 4. Incurred operating expenses on account of $44,000. 5. Collected $82,500 cash from accounts receivable, 6. Pald $39,000 cash for salary expense. 7. Paid $35,200 cash as a partial payment on accounts payable. eBook Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $6,000 of accrued salaries at the end of Year 1 Events for Year 2 1. Pald $6,000 cash for the salaries accrued at the end of the prior accounting period, 2. Performed services for cash of $57,000 3. Purchased $4,600 of supplies on account. 4. Paid $15,900 cash in advance for rent. The payment was for one year beginning April 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 receivable. 8. Pald $57,000 cash as a partial payment on accounts payable. 9. Paid $33,300 cash for salary expense. 10. Pald a $15,000 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 $800 of supplies were still on hand. d-1. Prepare an income statement for Year 1. M Grow < Prev 10 of 10 !!! Next >

Answer 1

Requirement (d) Colton Enterprise Income Statement For the Year Ended December 31, Year 1 Service Revenue $ 108,000 Expenses Operating Expense $ 44,000 Rent Expense $ 10,350 Salaries Expense $ 45,000 Total Expense Net Income $ 99,350 $ 8,650 Requirement (d2) Colton Enterprise Statement of changes in stockholders Equity For the Year Ended December 31, Year 1 Beginning Common Stock $ Add : Stock Issued $53,000 Ending Common Stock $ 53,000 Beginning Retained Earnings $ Add : Net Income $ 8,650 Ending Retained Earnings $ 8,650 Total Stockholders Equity $ 61,650 Note : Please comment down for any further clarifications