Colton Enterprises experienced the following events for Year 1, the first year of operation: Acquired $45,000 cash from the issue of common stock. Paid $13,000 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 $92,000. Incurred operating expenses on account of $40,000. Collected $70,500 cash from accounts receivable. Paid $31,000 cash for salary expense. Paid $32,000 cash as a partial payment on accounts payable. Adjusting Entries Made the adjusting entry for the expired rent. (See Event 2.) Recorded $4,400 of accrued salaries at the end of Year 1. Events for Year 2 Paid $4,400 cash for the salaries accrued at the end of the prior accounting period. Performed services for cash of $41,000. Purchased $3,800 of supplies on account. Paid $13,500 cash in advance for rent. The payment was for one year beginning April 1, Year 2. Performed services for customers on account for $108,000. Incurred operating expenses on account of $51,500. Collected $99,000 cash from accounts receivable. Paid $49,000 cash as a partial payment on accounts payable. Paid $32,500 cash for salary expense. Paid a $13,000 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.

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