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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.

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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 salaries 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 salaries expense. 10. Paid a $14,000 cash dividend to stockholders. Adjusting Entries 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. Required a. Record the events and adjusting entries for Year 1 in general journal form. b. Post the Year 1 events to T-accounts. (You will also post the closing entries in Req E to these T-accounts.) c. Prepare a trial balance for Year 1 . d-1. Prepare an income statement for Year 1. d-2. Prepare a statement of changes in stockholders' equity for Year 1. d-3. Prepare a balance sheet for Year 1. d-4. Prepare a statement of cash flows for Year 1. e. Record the entries to close the Year 1 temporary accounts to Retained Earnings in the general journal and post to the T-accounts. f. Prepare a post-closing trial balance for December 31, Year 1. Complete this question by entering your answers in the tabs below. Record the events and adjusting entries for Year 1 in general journal form. (Do not round intern required for a transaction/event, select "No journal entry required" in the first account field.)

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