2. (8 pts) Comprehensive problem: identify, analyze, and record transactions, post to T- accounts, and prepare an adjusted trial balance: Suppose that on December 31st, 2017, Space, Inc. has the following account balances in its unadjusted trial balance: Cash: $8,948; Accounts Receivable: $7,562: Prepaid Insurance: $3,000; Building: $15,000; Supplies: $1,497; Accounts Payable: $7,007; Deferred Revenue: $2,000; Notes Payable: $27,000; Assume all other balances are $0. The following information was gathered at December 31, 2017, the end of the accounting cycle for Space, Inc.: Borrowed the $27,000 from the bank on October 1st, 2017, signing a 6%, 5/year note Interest is paid annually on September 30t On December 31st, 2017, a count of supplies indicated that supplies of $631 are on hand The $15,000 building was purchased on February 1st, 2017 for cash. It has an expected useful life of 20 years and will have no resale or value at the end of its life Assume Space Inc. uses straight-line depreciation (i.e. the asset depreciates evenly) over the expected life of the building a. b. c. d. Space, Inc. prepaid $3,000 for a 12 month insurance policy on August 1s e. On December 27th, 2017, Space, Inc. provided services worth $2,840 for customers The customers will be billed for these services in January 2018 f. Space Inc. pays wages of $2,100 to its workers every week (i.e. every 7 days) Workers are paid $2,100 for one week's work on December 29th and they will next be paid $2,100 on January 5th On November 15th, Space Inc. received $2,000 for consulting services to be performed in December and January g. PART 1- Record adjusting entries (3pts): Record adjusting entries for all of the above events using adjusting journal entries PART 2- Post adjusting journal entries to T-Accounts (3pts): Post each of the above adjusting journal entries to T-Accounts and calculate the ending account balances in each T-account. HINT: Don't forget to start by entering balances given for each account in the unadjusted trial balance! PART 3- Prepare an adjusted trial balance (2pts): After calculating the ending balance in each T-account in Part 2, prepare an adjusted trial balance for Space, Inc. as of December 31, 2017 with the list of accounts in the following order: assets, liabilities, retained earnings, revenues, and expenses