Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $55,000 cash from the issue of common stock. 2. Paid $14,000 cash in advance for rent. The payment was for the period April 1, Year 1, to March 31, Year 2. 3. Performed services for customers on account for $112,000. 4. Incurred operating expenses on account of $45,000. 5. Collected $85,500 cash from accounts receivable. 6. Paid $41,000 cash for salary expense. 7. Paid $36,000 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $6,400 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $6,400 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $61,000. 3. Purchased $4,800 of supplies on account. 4. Paid $16,500 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $128,000. 6. Incurred operating expenses on account of $61,500. 7. Collected $109,000 cash from accounts receivable. 8. Paid $59,000 cash as a partial payment on accounts payable. 9. Paid $33,500 cash for salary expense. 10. Paid a $11,000 cash dividend to stockholders. Adjusting Entries 11. Made the adjusting entry for the expired rent. (Hint: Part of the rent was paid in Year 1.) 12. Recorded supplies expense. A physical count showed that $450 of supplies were still on hand. b. Post the Year 1 events to T-accounts. (Note: The balances before closing must be transferred to the T-accounts in Part e.) Beg. Bal. Balance before closing Beg. Bal. Balance before closing Beg. Bal. Balance before closing Beg. Bal. Balance before closing Cash Beg. Bal. Balance before closing Prepaid Rent Beg. Bal. Balance before closing Salaries Payable Beg. Bal. Balance before closing Service Revenue Beg. Bal. Balance before closing Accounts Receivable Accounts Payable Common Stock Operating Expenses Rent Expense Salaries Expense Beg. Bal. Beg. Bal. Balance before closing Balance before closing