ACC212- PRACTICE COMPREHENSIVE PROBLEM In 2019, Lane King created the Chaos Coordination Company which provided playground equipment and design for Day Care Centers and Elementary Schools. In 2019, the following transactions occurred: 1. 1/1/2019 Stockholders invested $450,000 in cash in the business in exchange for common stock. 2. 1/1/2019 Purchased Equipment for $10,000 in Cash 3. 2/1/2019 Paid $24,000 for One year Office Rent 4. 2/1/2019 Pre-paid $5,280 for two years of advertising in the local newspaper. 5. 2/1/2019 Purchased $7,400 in Office Supplies on Account 6. 3/1/2019 Purchased Business Insurance for an annual cost of $6,900 7. 4/1/2019 Paid S0% of Office Supplies bill purchased on account in transaction #5 8. 8/1/2019 Received a $17S,000, 4 year note payable from Chase Bank with a 4.5% interest rate. Interest is payable semi-annually (1/31 and 7/31) 9. Earned $690,000 for services and sales provided: a. $225,000 was received by customers in cash b. $465,000 was billed to customers 10. Paid salaries for employees of $144,500 11. Received a cash advance for Order of $85,000 not yet produced 12. Paid Utilities of $12,200 13. Received $385,200 in cash for customers from billed transactions 14. Declared and Paid a $2,000 dividend These are transactions for the full vear- just put a date of 12/31 Step One: Journalize the above transactions, post to the ledger (T-Accounts) and prepare a trial balance. Step Two: After reviewing the trial balance, prepare any adjusting entries necessary for the year (note, pay special attention to dates). In addition, the following adjustments were noted: Employees salaries for the last week of December and not yet paid total $22,200 After reviewing the A/R aging, management estimated that approximately $32,600 will not be collectible Utilities Expense incurred but not recorded totaled $2,750 Equipment is depreciated on a straight line basis with $1,000 salvage over 4 years A physical count of office supplies noted a balance of $725 Services provided but not yet billed totaled $37,400 Post all adjusting entries to T-Accounts Step Three: Prepare an adjusted Trial balance after posting all of the above entries. Step Four: Prepare an Income Statement, Statement of Retained Earnings and Balance Sheet for the 2019 year. Step Five: Prepare closing entries for the 2019 year. Step 6: Prepare a post-closing trial balance for Chaos Coordination Company