Colton Enterprises experienced the following events for Year $1,$ the first year of

operation:

Acquired $$54,000$ cash from the issue of common stock.

Paid $$13,900$ cash in advance for rent. The payment was for the period April $1,$ Year $1,$

to March $31,$ Year $2.$

Performed services for customers on account for $$110,000.$

Incurred operating expenses on account of $$44,500.$

Collected $$84,000$ cash from accounts receivable.

Paid $$40,000$ cash for salary expense.

Paid $$35,600$ cash as a partial payment on accounts payable.

Adjusting Entries

Made the adjusting entry for the expired rent. $($See Event $2.)$

Recorded $$6,200$ of accrued salaries at the end of Year $1.$

Events for Year $2$

Paid $$6,200$ cash for the salaries accrued at the end of the prior accounting period.

Performed services for cash of $$59,000.$

Purchased $$4,700$ of supplies on account.

Paid $$16,200$ cash in advance for rent. The payment was for one year beginning April

$1,$ Year $2.$

Performed services for customers on account for $$126,000.$

Incurred operating expenses on account of $$60,500.$

Collected $$108,000$ cash from accounts receivable.

Paid $$58,000$ cash as a partial payment on accounts payable.

Paid $$33,400$ cash for salary expense.

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

Adjusting Entries

Made the adjusting entry for the expired rent. $($Hint$.$ Part of the rent was paid in Year

$1.)$

Recorded supplies expense. A physical count showed that $$400$ of supplies were still

on hand.

Award: $3\mathrm{.}57$ points

b$.$ Post the Year $1$ events to T$-$accounts.