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

1. Acquired $53,000 cash from the issue of common stock.
2. Paid $13,800 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 $108,000.
4. Incurred operating expenses on account of $44,000.
5. Collected $82,500 cash from accounts receivable.
6. Paid $39,000 cash for salary expense.
7. Paid $35,200 cash as a partial payment on accounts payable.

Adjusting Entries

8. Made the adjusting entry for the expired rent. (See Event 2.)
9. Recorded $6,000 of accrued salaries at the end of Year 1.

Events for Year 2

1. Paid $6,000 cash for the salaries accrued at the end of the prior accounting period.
2. Performed services for cash of $57,000.
3. Purchased $4,600 of supplies on account.
4. Paid $15,900 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
5. Performed services for customers on account for $124,000.
6. Incurred operating expenses on account of $59,500.
7. Collected $107,000 cash from accounts receivable.
8. Paid $57,000 cash as a partial payment on accounts payable.
9. Paid $33,300 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 $800 of supplies were still on hand.

Record the events and adjusting entries for Year 1 in general journal form.

Post the Year 1 events to T-accounts.

Prepare a trial balance for Year 1.

Prepare an income statement for Year 1.

Prepare a statement of changes in stockholders equity for Year 1.

Prepare a balance sheet for Year 1.

Prepare a statement of cash flows for Year 1

Prepare a post-closing trial balance for December 31, Year 1.