Line tollowing information applies to the questions aispiayed DEIOW. Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $54,000 cash from the issue of common stock. 2. Paid $13,900 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 $110,000. 4. Incurred operating expenses on account of $44,500. 5. Collected $84,000 cash from accounts receivable. 6. Paid $40,000 cash for salary expense. 7. Paid $35,600 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $6,200 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $6,200 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $59,000. 3. Purchased $4,700 of supplies on account. 4. Paid $16,200 cash in advance for rent. The payment was for one year beginning April 1. Year 2. 5. Performed services for customers on account for $126,000. 6. Incurred operating expenses on account of $60,500. 7. Collected $108,000 cash from accounts receivable. 8. Paid $58,000 cash as a partial payment on accounts payable. 9. Paid $33,400 cash for salary expense. 10. Pald a $10,000 cash dividend to stockholders. 8. Paid 350,000 Cash as a paruar payment on accounts payable. 9. Paid $33,400 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 $400 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. (1f no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Required information View transaction list Journal entry worksheet 1 2 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 ca we Required information View transaction list Journal entry worksheet 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. CP Required information End. Bal. End. Bal. Retained Earnings Service Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Operating Expenses Rent Expense Beg. Bal. Beg. Bal. End, Bal End. Bal. Salaries Expense Beg. Bal. End. Bal. C
