Problem: Company C has a corporate location in Chicago, IL and has decided to expand its operations to Omaha, NE in the following six months. CFO, Joe Smith, has identified the cash that is necessary to start such an expansion. Joe has itemized all of the transactions and documented the transactions against the potential growth that the expansion would precede.
He then did an analysis of these transactions and the costs that were incurred and structured a trial balance. Once the expansion was underway, Joe began to post the actual entries in his ledger until he reached the end of the year. Discuss what stage of the accounting cycle Joe Smith and Company C are in and identify the complete stages. What measures should Joe take to complete the accounting cycle?