c. Prepare a trial balance for Year1. COLTON ENTERPRISES Trial Balance December 31, Year1 DebitCredit Account Titles 0 Totals Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $56,000 cash from the issue of common stock. 2. Paid $14,10o cash in advance for rent. The payment was for the period April 1, Year 1, to March 31, Ye 3. Performed services for customers on account for $114,000. 4. Incurred operating expenses on account of $45,500 5. Collected $87,000 cash from accounts receivable 6. Paid $42,000 cash for salary expense 7. Paid $36,400 cash as a partial payment on accounts payable. 3 Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $6,600 of accrued salaries at the end of Year 1 Events for Year 2 1. Paid $6,600 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $63,000 3. Purchased $4,900 of supplies on account. 4. Paid $16.800 cash in advance for rent. The payment was for one year beginning April 1, Year 2 5. Performed services for customers on account for $130,000. 6. Incurred operating expenses on account of $62,500 7. Collected $110,000 cash from accounts receivable 8. Paid $60,000 cash as a partial payment on accounts payable. 9. Paid $33,600 cash for salary expense 10. Paid a $12,000 cash dividend to stockholders 2 9 7. Paid $36,400 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $6,600 of accrued salaries at the end of Year 1 Events for Year 2 1. Paid $6,600 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $63,000. 3. Purchased $4,900 of supplies on account. 4. Paid $16,800 cash in advance for rent. The payment was for one year beginning April 1, Year 2 5. Performed services for customers on account for $130,000. 6. Incurred operating expenses on account of $62,500. 7. Collected $110,000 cash from accounts receivable 8. Paid $60,000 cash as a partial payment on accounts payable. 9. Paid $33,600 cash for salary expense. 10. Paid a $12,000 cash dividend to stockholders Adjusting Entries 11. Made the adjusting entry for the expired rent. (Hint Part of the rent was paid in Year t) 12. Recorded supplies expense. A physical count showed that $500 of supplies were still on hand c. Prepare a trial balance for Year 1