Colton Enterprises experienced the following events for Year 1, the first year of operation 1. Acquired $41,000 cash from the issue of common stock 2. Paid $12,600 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 $84,000, 4. Incurred operating expenses on account of $38.000 5. Collected $64,500 cash from accounts receivable 6. Paid $27,000 cash for salary expense. 7. Paid $30.400 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $3,600 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $3,600 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $33,000. 3. Purchased $3,400 of supplies on account. 4. Paid $12,300 cash in advance for rent. The payment was for one year beginning April 1. Year 2 5. Performed services for customers on account for $100,000 6. Incurred operating expenses on account of $47,500. 7. Collected $95.000 cash from accounts receivable. Events for Year 2 1. Paid $3,600 cash for the salaries accrued at the end of the prior accounting period 2. Performed services for cash of $33,000 3. Purchased $3,400 of supplies on account 4. Paid $12,300 cash in advance for rent. The payment was for one year beginning April 1, Year 2 5. Performed services for customers on account for $100,000. 6. Incurred operating expenses on account of $47,500. 7. Collected $95.000 cash from accounts receivable. 8. Paid $45.000 cash as a partial payment on accounts payable. 9. Paid $32,100 cash for salary expense. 10. Paid a $15.000 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 $750 of supplies were still on hand. Cash Accounts Receivable Beg Bal. Beg Bal 12,600 27,000 30,400 41,000 64,500 35,500 84,000 64,500 End Bal. End, Bal 19,500 Prepaid Rent Accounts Payable Beg. Bal Beg. Bal 12,600 9.450 30,400 38,000 End. Bal. 3.150 End. Bal. 7,600 Salaries Payable Common Stock Beg Bal. Beg Bal. 3,600 41,000 End. Bal 3,600 End. Bal 41.000 Retained Earnings Service Revenue Beg Bal. Beg. Bal. 78,050 ch cl End. Bal 84,000 cl 5,950 84,000 84,000 End. Bal Operating Expenses Rent Expense Beg. Bal Beg. Bal 38,000 cl 38,000 9,450 cl 9.450 End. Bal. End. Bal Salaries Expense Beg. Bal 30.600 cl 30,600 End. Bal