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

1. Acquired $55,000 cash from the issue of common stock.
2. Paid $14,000 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 $112,000.
4. Incurred operating expenses on account of $45,000.
5. Collected $85,500 cash from accounts receivable.
6. Paid $41,000 cash for salary expense.
7. Paid $36,000 cash as a partial payment on accounts payable.

Adjusting Entries

8. Made the adjusting entry for the expired rent. (See Event 2.)
9. Recorded $6,400 of accrued salaries at the end of Year 1.

Events for Year 2

1. Paid $6,400 cash for the salaries accrued at the end of the prior accounting period.
2. Performed services for cash of $61,000.
3. Purchased $4,800 of supplies on account.
4. Paid $16,500 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
5. Performed services for customers on account for $128,000.
6. Incurred operating expenses on account of $61,500.
7. Collected $109,000 cash from accounts receivable.
8. Paid $59,000 cash as a partial payment on accounts payable.
9. Paid $33,500 cash for salary expense.
10. Paid a $11,000 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 $450 of supplies were still on hand.

^{Post the Year 1 events to T-accounts.}

Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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 issuance of common stock. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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 cash paid in advance for Rent. Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal an Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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 services performed on account. Note: Enter debits before credits. Event General Journal Debit Credit 3 Record entry Clear entry View general Journal Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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 operating expenses incurred on account. Note: Enter debits before credits. Event General Journal Debit Credit 4 Record entry Clear entry View general journal Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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 for cash collected from accounts Receivable. Note: Enter debits before credits. Event General Journal Debit Credit 5 Record entry Clear entry View general journal Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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 cash paid for salary expenses. Note: Enter debits before credits. Event General Journal Debit Credit 6 Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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 cash paid for partial payment on accounts payable. Note: Enter debits before credits. Event General Journal Debit Credit 7 Record entry Clear entry View general journal Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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 adjusting entry for expired rent. Note: Enter debits before credits. Event General Journal Debit Credit 8 Record entry Clear entry View general Journal Required a. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intermediate calculations. 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