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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 $42,000 cash from the issue of common stock. 2. Paid $12,700 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 $86,000. 4. Incurred operating expenses on account of $38,500. 5. Collected $66,000 cash from accounts receivable. 6. Paid $28,000 cash for salary expense. 7. Paid $30,800 cash as a partial payment on accounts payable. Adjusting Entries 8. Made the adjusting entry for the expired rent. (See Event 2.) 9. Recorded $3,800 of accrued salaries at the end of Year 1 . Events for Year 2 1. Paid $3,800 cash for the salaries accrued at the end of the prior accounting period. 2. Performed services for cash of $35,000. 3. Purchased $3,500 of supplies on account. 4. Paid $12,600 cash in advance for rent. The payment was for one year beginning April 1, Year 2 . 5. Performed services for customers on account for $102,000. 6. Incurred operating expenses on account of $48,500. 7. Collected $96,000 cash from accounts receivable. 8. Paid $46,000 cash as a partial payment on accounts payable. 9. Paid $32,200 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 $800 of supplies were still on hand. c. Prepare a trial balance for Year 1

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