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. Post the closing entries for Year 2 to the T-accounts. Cash Accounts Receivable Beg Bal Beg Bal End, Bal End. Bal Prepaid Rent Supplies Beg Bal Beg Bal End Bal End. Bal Accounts Payable Common Stock Beg Ball Beg. Bal End Bal End. Bal Retained Earnings Dividends Beg. Bal Beg Bal End Bal End Bal Service Revenue Operating Expenses. Beg Bal Beg Bal End Ball End, Bal + Rent Expense Salaries Expense Beg. Bal Beg Bal End. Bal End Bal End. Bal. En Supplies Expense Beg Bal. End. Bal.