Comprehensive Accounting Cycle Problem Suppose that on January 1 st , 2017, Space, Inc has the following account balances in its general ledger Cash $23,950 Accounts Receivable $18,180 Supplies $500 Equipment $24,000 Accumulated Depreciation Equipment $2,800 Accounts Payable $6,130 Wages Payable $1,800 Interest payable $400 Notes Payable $20,000 Common Stock $18,000 Retained Earnings $17,500 Assume all other balances are $0 During 2017, the following transactions occurred On 1 9, paid workers $5,800 in cash $1,800 represented expenses related to 2016 The remaining $4,000 represented expenses related to work done in 2017 On 2 28, provided $72,900 worth of services to customers Customers paid $22,000 in cash and the remaining $50,900 of these services were provided on account On 3 11, collected $31,800 in cash from customers in transaction b On 4 20, purchased $630 worth of supplies on account On 5 13, paid $2,170 to creditors for accounts payable On 8 31, paid annual interest of $1,200 on the note $400 of this represented interest expense related to 2016 The remaining $800 represents interest expense related to 2017 On 9 2, issued shares of common stock in exchange for $15,000 in cash On 10 17, paid $3,000 in cash for advertising costs for the current year On 11 16, received $8,700 in cash in advance from customers for services to be provided in December 2017 and January 2018 On 12 15, paid workers $40,000 in cash for work completed in 2017 On 12 29, paid $3,100 in cash dividends to stockholders The following additional information was gathered at December 31, 2017, the end of the annual accounting period for Space, Inc Assume Space, Inc uses an annual accounting period and all adjustments and adjusting entries are made only at the end of the annual accounting period on December 31 st (i e no adjusting entries have been made yet related to the items listed below) Space, Inc uses the following account titles Cash, A R, Supplies, Equipment, Accumulated Depreciation Equipment, A P, Wages payable, Deferred revenue, Interest payable, Notes payable, Service revenue, Wages expense, Interest expense, Advertising expense, Depreciation expense, Supplies expense, Dividends On December 31 st , 2017, a physical count of supplies indicated that supplies of $425 are left on hand Accrued wages as of 12 31 17 amounted to $2,100 Of the $8,700 cash paid in advance from customers, $4,150 of the services were provided in December 2017 The $24,000 in equipment was purchased on June 1 st , 2016 It has an expected useful life of 5 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 The $20,000 note payable was borrowed from the bank on September 1 st , 2015, with Space, Inc signing a 6 (annual rate), 10 year note Interest payments are made annually on August 31 st PART 4 Record adjusting entries Record the adjusting journal entries Space should make on December 31, 2017 based on all of the above information PART 5 Post adjusting journal entries to T Accounts Post each of the above adjusting journal entries to the relevant T Accounts and recalculate the ending account balances in each T account Add additional T accounts where necessary PART 6 Prepare an adjusted trial balance After recalculating the ending balance in each T account in PART 5, prepare an adjusted trial balance for Space, Inc as of December 31, 2017 with the list of accounts in the following order assets, liabilities, common stock, retained earnings, revenues, expenses, and dividends PART 7 Prepare financial statements Prepare the following financial statements for Space, Inc Income statement for the period ended December 31 st , 2017 Statement of shareholders equity for the period ended December 31 st , 2017 Classified balance sheet as of December 31 st , 2017 PART 8 Record closing entries and post the closing entries to T accounts Record closing entries using closing journal entries and post these closing entries to the appropriate T accounts to complete the closing process For revenue and expense accounts, dont forget to close to the Income Summary account first before closing the net income (loss) amount to Retained Earnings PART 9 Prepare a post closing trial balance After calculating the ending balance in each T account in PART 8, prepare a post closing trial balance for Space, Inc as of December 31 st , 2017 with the list of accounts in the following order assets, liabilities, common stock, and retained earnings

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Comprehensive Accounting Cycle Problem: Suppose that on January 1 st , 2017, Space, Inc. has the following account balances in its general ledger: Cash: $23,950;

Comprehensive Accounting Cycle Problem: Suppose that on January 1^st, 2017, Space, Inc. has the following account balances in its general ledger: Cash: $23,950; Accounts Receivable: $18,180; Supplies: $500; Equipment: $24,000; Accumulated Depreciation-Equipment: $2,800; Accounts Payable: $6,130; Wages Payable: $1,800; Interest payable: $400; Notes Payable: $20,000; Common Stock: $18,000; Retained Earnings: $17,500. Assume all other balances are $0. During 2017, the following transactions occurred:
1. On 1/9, paid workers $5,800 in cash. $1,800 represented expenses related to 2016. The remaining $4,000 represented expenses related to work done in 2017.
2. On 2/28, provided $72,900 worth of services to customers. Customers paid $22,000 in cash and the remaining $50,900 of these services were provided on account.
3. On 3/11, collected $31,800 in cash from customers in transaction b.
4. On 4/20, purchased $630 worth of supplies on account.
5. On 5/13, paid $2,170 to creditors for accounts payable.
6. On 8/31, paid annual interest of $1,200 on the note. $400 of this represented interest expense related to 2016. The remaining $800 represents interest expense related to 2017.
7. On 9/2, issued shares of common stock in exchange for $15,000 in cash.
8. On 10/17, paid $3,000 in cash for advertising costs for the current year.
9. On 11/16, received $8,700 in cash in advance from customers for services to be provided in December 2017 and January 2018.
10. On 12/15, paid workers $40,000 in cash for work completed in 2017.
11. On 12/29, paid $3,100 in cash dividends to stockholders.

The following additional information was gathered at December 31, 2017, the end of the annual accounting period for Space, Inc. Assume Space, Inc. uses an annual accounting period and all adjustments and adjusting entries are made only at the end of the annual accounting period on December 31^st (i.e. no adjusting entries have been made yet related to the items listed below). Space, Inc. uses the following account titles: Cash, A/R, Supplies, Equipment, Accumulated Depreciation-Equipment, A/P, Wages payable, Deferred revenue, Interest payable, Notes payable, Service revenue, Wages expense, Interest expense, Advertising expense, Depreciation expense, Supplies expense, Dividends.

On December 31^st, 2017, a physical count of supplies indicated that supplies of $425 are left on hand.
1. Accrued wages as of 12/31/17 amounted to $2,100.
2. Of the $8,700 cash paid in advance from customers, $4,150 of the services were provided in December 2017.
3. The $24,000 in equipment was purchased on June 1^st, 2016. It has an expected useful life of 5 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.
4. The $20,000 note payable was borrowed from the bank on September 1^st, 2015, with Space, Inc. signing a 6% (annual rate), 10-year note. Interest payments are made annually on August 31^st.

PART 4 Record adjusting entries: Record the adjusting journal entries Space should make on December 31, 2017 based on all of the above information.

PART 5 Post adjusting journal entries to T-Accounts: Post each of the above adjusting journal entries to the relevant T-Accounts and recalculate the ending account balances in each T-account. Add additional T-accounts where necessary.

PART 6 Prepare an adjusted trial balance: After recalculating the ending balance in each T-account in PART 5, prepare an adjusted trial balance for Space, Inc. as of December 31, 2017 with the list of accounts in the following order: assets, liabilities, common stock, retained earnings, revenues, expenses, and dividends.

PART 7 Prepare financial statements: Prepare the following financial statements for Space, Inc.:

Income statement for the period ended December 31^st, 2017
Statement of shareholders equity for the period ended December 31^st, 2017
Classified balance sheet as of December 31^st, 2017.

PART 8 Record closing entries and post the closing entries to T-accounts: Record closing entries using closing journal entries and post these closing entries to the appropriate T-accounts to complete the closing process. For revenue and expense accounts, dont forget to close to the Income Summary account first before closing the net income/(loss) amount to Retained Earnings.

PART 9 Prepare a post-closing trial balance: After calculating the ending balance in each T-account in PART 8, prepare a post-closing trial balance for Space, Inc. as of December 31^st, 2017 with the list of accounts in the following order: assets, liabilities, common stock, and retained earnings.