Question

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 $42.000 cash from the issue of common stock 2 Paid $12700 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 $86.000. 4. Incurred operating expenses on account of $38.500. 5. Collected $66,000 cash from accounts receivable. 6. Pald $28,000 cash for salary expense. 7. Paid $30,800 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2) 9. Recorded $3.800 of accrued salaries at the end of Year 1. Events for Year 2 1. Pald $3.800 cash for the salaries accrued at the end of the prior accounting period. 2 Performed services for cash of $35.000 3. Purchased $3.500 of supplies on account. 4. Pald $12,600 cash in advance for rent. The payment was for one year beginning April 1. Year 2 5. Performed services for customers on account for $102.000. 6. Incurred operating expenses on account of $48.500. 7. Collected $95.000 cash from accounts receivable. 8. Pald $46.000 cash as a partial payment on accounts payable. 9. Pald $32.200 cash for salary expense. 10. Pald a $10.000 cash dividend to stockholders. Adjusting Entries 11. Made the adjusting entry for the expired rent. (Hint: Part of the rent was pald In Year 1.) 12 Recorded supplies expense. A physical count showed that $800 of supplies were still on hand. Required a. Record the events and adjusting entries for Year 1 In general Journal form. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction Bat Journal entry worksheet 2 4 6 7 8 9 > Record issuance of common stock. Note: Enter debits before credits Event General Journal Debit Credit 1 Record entry Clear entry View general Journal

Answer 1

Event	General Journal	Debit	Credit
1	Cash	$ 42,000
	Common stock		$ 42,000
	[To record issuance of common stock]
2	Prepaid rent	$ 12,700
	Cash		$ 12,700
	[To record payment of rent in advance]
3	Accounts receivable	$ 86,000
	Service revenue		$ 86,000
	[To record services performed on account]
4	Operating expenses	$ 38,500
	Accounts payable		$ 38,500
	[To record operating expenses]
5	Cash	$ 66,000
	Accounts receivable		$ 66,000
	[To record cash collected from accounts receivable]
6	Salary expense	$ 28,000
	Cash		$ 28,000
	[To record payment of salary expense]
7	Accounts payable	$ 30,800
	Cash		$ 30,800
	[To record payment of cash on acconts payable]
8	Rent expense [12700 x 9/12]	$ 9,525
	Prepaid Rent		$ 9,525
	[To record expired rent]
9	Salaries expense	$ 3,800
	Salaries payable		$ 3,800
	[To record accrued salaries]