Cummings Enterprises experienced the following events for 2011, the first year of operation. 1. Acquired ($ 13,000)

Question:

Cummings Enterprises experienced the following events for 2011, the first year of operation.

1. Acquired $\$ 13,000$ cash from the issue of common stock.

2. Paid $\$ 4,000$ cash in advance for rent. The payment was for the period April 1, 2011, to March 31, 2012.

3. Performed services for customers on account for $\$ 27,000$.

4. Incurred operating expenses on account of $\$ 13,500$.

5. Collected $\$ 25,150$ cash from accounts receivable.

6. Paid $\$ 8,500$ cash for salary expense.

7. Paid $\$ 11,500$ cash as a partial payment on accounts payable.

Adjusting Entries
8. Made the adjusting entry for the expired rent. (See Event 2.)

9. Recorded $\$ 900$ of accrued salaries at the end of 2011.

Events for 2012
1. Paid $\$ 900$ cash for the salaries accrued at the end of the prior accounting period.

2. Performed services for cash of $\$ 8,500$.

3. Purchased $\$ 1,200$ of supplies on account.

4. Paid $\$ 4,500$ cash in advance for rent. The payment was for one year beginning April 1 , 2012.

5. Performed services for customers on account for $\$ 42,000$.

6. Incurred operating expense on account of $\$ 19,250$.

7. Collected $\$ 40,500$ cash from accounts receivable.

8. Paid $\$ 20,000$ cash as a partial payment on accounts payable.

9. Paid $\$ 14,000$ cash for salary expense.

10. Paid a $\$ 6,000$ cash dividend to stockholders.

Adjusting Entries
11. Made the adjusting entry for the expired rent. (Hint: Part of the rent was paid in 2011.)

12. Recorded supplies expense. A physical count showed that $\$ 300$ of supplies were still on hand.