Question: The following events apply to Colton Training Co for 2016

The following events apply to Colton Training Co. for 2016, its first year of operation:
1. Received cash of $60,000 from the issue of common stock.
2. Performed $100,000 worth of services on account.
3. Paid $74,000 cash for salaries expense.
4. Purchased supplies for $13,000 on account.
5. Collected $79,000 of accounts receivable.
6. Paid $9,500 of the accounts payable.
7. Paid a $6,000 dividend to the stockholders.
8. Had $2,500 of supplies on hand at the end of the period.
Required
a. Record these events in general journal form.
b. Post the entries to T-accounts and determine the ending balance in each account.
c. Determine the amount of total assets at the end of 2016.
d. Determine the amount of net income for 2016.

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  • CreatedApril 20, 2015
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