Colton Enterprises experlenced the following events for Year 1, the first year of operation: 1. Acquired $37.000 cash from the issue of common stock. $12,200 cash in advance for rent. The payment was for the perlod April 1, Year 1, to March 31, Year 2. med services for customers on account for $76,000. ed operating expenses on account of $36.000. 5. Collected $58,500 cash from accounts recelvable. 6. Pald $23,000 cash for salary expense. 7. Pald $28,800 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent (See Event 2.) 9. Recorded $2,800 of accrued salarles at the end of Year 1 Events for Year 2 1. Pald $2,800 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $25,000. 3. Purchased $3,000 of supplies on account. 4. Pald $11,100 cash in advance for rent. The payment was for one year beginning Apmil 1, Year 2 5. Performed services for customers on account for $92,000. 6. Incurred operating expenses on account of $43.500 7. Collected $91,000 cash from accounts recelvable. 8. Pald $41,000 cash as a partial payment on accounts payable. 9. Paid $31,700 cash for salary expense. 10. Paid a $11,000 cash dividend to stockhoiders. Adjusting Entries 11. Made the adjusting entry for the expired rent. (Hint Part of the rent was poid in Year 1.) 12. Recorded supplies expense. A physical count showed that $550 of supplies were still on hand. COLTON ENTERPRISES Statement of Cash Flows Fot the Year Ended December 31, Year 1 Cash flows from operating activities: Received from customers Paid for expenses \$ 58,500 (23,000) Net cash flow from operating activities 535,500 Cash flows from investing activities: Cash flows from financing activities: Net cash flow from financing activities Net change in cash Ending cash balance 535,500