Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $36,000 cash from the issue of common stock. 2. Paid $12,100 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 $74,000. 4. Incurred operating expenses on account of $35,500. 5. Collected $57,000 cash from accounts receivable. 6. Paid $22,000 cash for salary expense. 7. Paid $28,400 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $2,600 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $2,600 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $23,000. 3. Purchased $2,900 of supplies on account. 4. Paid $10,800 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $90,000. 6. Incurred operating expenses on account of $42,500. 7. Collected $90,000 cash from accounts receivable. 8. Paid $40,000 cash as a partial payment on accounts payable. 9. Paid $31,600 cash for salary expense. 10. Paid a $10,000 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. 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 service revenue. Note: Enter debits before credits. Date General Journal Debit Credit Dec. 31 Record entry Clear entry View general journal View transaction list Journal entry worksheet