Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $47,000 cash from the issue of common stock. 2. Paid $13,200 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 $96,000. 4. Incurred operating expenses on account of $41,000. 5. Collected $73,500 cash from accounts receivable. 6. Paid $33,000 cash for salary expense. 7. Paid $32,800 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $4,800 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $4,800 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $45,000. 3. Purchased $4,000 of supplies on account. 4. Paid $14,100 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $112,000. 6. Incurred operating expenses on account of $53,500. 7. Collected $101,000 cash from accounts receivable. 8. Paid $51,000 cash as a partial payment on accounts payable. 9. Paid $32,700 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 $500 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.) Cash Accounts Receivable Beg. Bal. Beg. Bal. Balance before closing Balance before closing Prepaid Rent Accounts Payable Beg. Bal. Beg. Bal. Balance before closing Balance before closing Salaries Payable Common Stock Beg. Bal. Beg. Bal. Balance before closing Balance before closing Service Revenue Operating Expenses Beg. Bal. Beg. Bal. Balance before closing Balance before closing Rent Expense Salaries Expense Beg. Bal. Beg. Bal