Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $52,000 cash from the issue of common stock. 2. Pald $13,700 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 $106,000. 4. Incurred operating expenses on account of $43,500. 5. Collected $81,000 cash from accounts receivable. 6. Pald $38,000 cash for salary expense. 7. Paid $34,800 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $5,800 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $5,800 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $55,000. 3. Purchased $4,500 of supplies on account. 4. Pald $15,600 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $122,000. 6. Incurred operating expenses on account of $58,500. 7. Collected $106,000 cash from accounts receivable. 8. Pald $56,000 cash as a partial payment on accounts payable. 9. Pald $33,200 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 $750 of supplies were still on hand. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts, (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.) View transaction list Journal entry worksheet 1 2 Record entry to close service revenue Note Enter bits before credits General Journal Debit Crudit Dato Dec. 31 Record entry Clear entry View general Journal e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general Journal and post to the T-accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record entry to close expenses. Note: Enter debits before credits Date General Journal Dobit Credit Dec 31 Record entry Clear entry View general Journal Cash Accounts Receivable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Prepaid Rent Accounts Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries Payable Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal. Retained Earnings Service Ravenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Operating Expehses Rent Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries Expense Beg. Bal. End. Bal. +
