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

1. Acquired $40,000 cash from the issue of common stock.
2. Paid $12,500 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 $82,000.
4. Incurred operating expenses on account of $37,500.
5. Collected $63,000 cash from accounts receivable.
6. Paid $26,000 cash for salary expense.
7. Paid $30,000 cash as a partial payment on accounts payable.

Adjusting Entries

8. Made the adjusting entry for the expired rent. (See Event 2.)
9. Recorded $3,400 of accrued salaries at the end of Year 1.

Events for Year 2

1. Paid $3,400 cash for the salaries accrued at the end of the prior accounting period.
2. Performed services for cash of $31,000.
3. Purchased $3,300 of supplies on account.
4. Paid $12,000 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
5. Performed services for customers on account for $98,000.
6. Incurred operating expenses on account of $46,500.
7. Collected $94,000 cash from accounts receivable.
8. Paid $44,000 cash as a partial payment on accounts payable.
9. Paid $32,000 cash for salary expense.
10. Paid a $14,000 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 $700 of supplies were still on hand.

(Journal Entries for advance for rent, performed on account, operating expense, cash collected from account received, salary expense, participating on account payable, expired rent, accused salaries for year 1)

Journal entry worksheet A Record issuance of common stock. Note: Enter debits before credits. Event 1 Cash No journal entry required No journal entry required No journal entry required No journal entry required No journal entry required Record entry D E F G General Journal Clear entry H I Debit 34,100 Credit View general journal > b. Post the Year 1 events to T-accounts. Cash Beg. Bal. End. Bal. Prepaid Rent Beg. Bal. End. Bal. Salaries Payable Beg. Bal. End. Bal. Service Revenue Beg. Bal. End. Bal. Rent Expense Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Beg. Bal. End. Bal. Accounts Receivable Accounts Payable Common Stock Operating Expenses Salaries Expense c. Prepare a trial balance for Year 1. COLTON ENTERPRISES Trial Balance December 31, Year 1 Account Titles Debit Totals Credit