Accounting Cycle Problem The John Marshall Company, Inc., which provides consulting services to major utility companies, was formed on January 2 of this year. Transactions completed during the first year of operation were as follows: January 2-Issued 600,000 shares of stock for $10,300,000. January 10-Acquired equipment in exchange for $2,600,000 cash and a $5,100,000 note payable. The note is due in ten years. February 1-Paid $12,000 for a business insurance policy covering the two-year period beginning on February 1. February 22-Purchased $900,000 of supplies on account March 1-Paid wages of $185,600 March 23-Billed $2,810,000 for services rendered on account April 1-Paid $120,000 of the amount due on the supplies purchased February 22. April 17-Collected $300,000 of the accounts receivable May 1-Paid wages of $200,400. May 8-Received and paid bill for $96,000 for utilities. May 24-Paid $44,000 for sales commissions. June 1- Made the first payment of 250,000 on the note issued January 10. The payment consisted of $50,000 interest and $200,000 applied against the principal of the note. June 16-Billed customers for $520,000 of services rendered. June 30 Collected $310,000 on accounts receivable. July 10- Purchased $150,000 of supplies on account. August 25-Paid $155,000 for administrative expenses. September 23-Paid $31,000 for warehouse repairs. October 1- Paid general wages of $91,000. November 20-Purchased supplies for $61,000 cash. December 15-Collected $145,000 in advance for services to be provided in December and January. December 30-Declared and paid a $55,000 dividend to shareholders. Assets: 101 Cash 102 Accounts receivable 103 Supplies 104 Prepaid insurance 110 112 Equipment Accumulated depreciation Liabilities: 201 Accounts payable 202 Unearned service revenue 203 Wages payable 210 Interest payable 220 Notes payable Stockholders' Equity: 301 Common stock 310 320 Retained earnings Dividends Revenues: 401 Service revenue Expenses: 501 Wage expense 502 Utility expense 503 Selling expense 504 Administrative expense 505 Repairs expense 506 Insurance expense 507 Supplies expense 510 Depreciation expense 520 Interest expense Other: 601 Income summary 1. Journalize the transactions for the year. 2. Post the journal entries to a T account. 3. Prepare an unadjusted trial balance as of December 31. 4. Journalize and post adjusting entries to the T accounts based on the following additional information; a. Eleven months of the insurance policy expired by the end of the year. b. Depreciation for equipment is $410,000. c. The company provided $92,000 of services related to the advance collection of December 15. d. There are $545,000 of supplies on hand at the end of the year. e. An additional $185,000 of interest has accrued on the note by the end of the year. f. Marshall accrued wages of $215,000 at the end of the ear. 5. Prepare an adjusted trial balance as of December 31. 6. Prepare a single-step income statement and statement of retained earnings for the year ended December 31 and a classified balance sheet as of December 31. 7. Journalize and post the closing entries 8. Prepare a post-closing trial balance as of December 31