Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $50,000 cash from the issue of common stock. 2. Paid $13,500 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 $102,000. 4. Incurred operating expenses on account of $42,500. 5. Collected $78,000 cash from accounts receivable. 6. Paid $36,000 cash for salary expense. 7. Paid $34,000 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $5,400 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $5,400 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $51,000. 3. Purchased $4,300 of supplies on account. 4. Paid $15,000 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $118,000. 6. Incurred operating expenses on account of $56,500. 7. Collected $104,000 cash from accounts receivable. 8. Paid $54,000 cash as a partial payment on accounts payable. 9. Paid $33,000 cash for salary expense. 10. Paid a $12,000 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 $650 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 View journal entry worksheet No Date General Journal Debit Credit 1 Dec. 31 Service revenue 102,000 Retained earnings 102,000 2 Dec. 31 94,025 Retained earnings Operating expenses Salaries expense 42,500 41,400 10,125 Rent expense 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 Revenue Beg. Bal. Beg. Bal. cl cl cl End. Bal. End. Bal. Operating Expenses Rent Expense Beg. Bal. Beg. Bal. cl cl End. Bal. End. Bal. Salaries Expense Beg. Bal. cl End. Bal