Required information [The following information applies to the questions displayed below.] Colton Enterprises experienced the following events for Year 1, the first year of operation: 1. Acquired $44,000 cash from the issue of common stock. 2. Paid $12,900 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 $90,000. 4. Incurred operating expenses on account of $39,500. 5. Collected $69,000 cash from accounts receivable. 6. Paid $30,000 cash for salary expense. 7. Paid $31,600 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $4,200 of accrued salaries at the end of Year 1. Events for Year 2 1. Paid $4,200 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $39,000. 3. Purchased $3,700 of supplies on account. 4. Paid $13,200 cash in advance for rent. The payment was for one year beginning April 1, Year 2. 5. Performed services for customers on account for $106,000. 6. Incurred operating expenses on account of $50,500. 7. Collected $98,000 cash from accounts receivable. 8. Paid $48,000 cash as a partial payment on accounts payable. 9. Paid $32,400 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 $350 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 1 Dec. 31 Salaries payable Cash Debit Credit