UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Accounting Cycle Form

(Mark One)

! ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended July 31, 2011 or

" TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from July 1, 2011 to July 31, 2011. Commission File No. 1-10635

PLANET EXPRESS, Inc.

(Exact name of Registrant as specified in its charter)

New York
(State or other jurisdiction of incorporation)

93-0584321
(IRS Employer Identification No.)

1802 Hartford Manhattan, New New York 97005-6453

(Address of principal executive offices) (Zip Code)

(212) 671-6453
(Registrants Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act: Class B Common Stock
(Title of Each Class)

New York Stock Exchange

(Name of Each Exchange on Which Registered)

Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ! No " Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes " No ! Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ! No "

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Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ! No " Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. " Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a nonaccelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. Large accelerated filer ! Non-accelerated filer " Accelerated filer " Smaller Reporting Company "

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes " No ! As of November 30, 2010, the aggregate market value of the Registrants Class A Common Stock held by non-affiliates of the Registrant was $2,005,831,959 and the aggregate market value of the Registrants Class B Common Stock held by non-affiliates of the Registrant was $33,459,424,185. As of July 18, 2011, the number of shares of the Registrants Class A Common Stock outstanding was 89,989,447 and the number of shares of the Registrants Class B Common Stock outstanding was 384,840,843. DOCUMENTS INCORPORATED BY REFERENCE: Parts of Registrants Proxy Statement for the Annual Meeting of Shareholders to be held on September 19, 2011 are incorporated by reference into Part III of this Report.

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Part 1 Item 1 Core Financial Statements Definitions

Financial Statements Financial accounting information is conveyed through a standardized set of reports. Those reports are the balance sheet, income statement, statement of retained earnings, and statement of cash flows. Income Statements A summary of an entitys results of operation for a specified period of time is revealed in the income statement, as it provides information about the revenues generated and expenses incurred. The difference between the revenues and expenses is identified as the net income or net loss. The income statement can be prepared using single-step or multi-step approach, and might be further modified to include a number of special disclosures relating to unique items. Balance Sheets The balance sheet focuses on the accounting equation by revealing the economic resources owned by an entity and the claims against those resources (liabilities and owners equity). The balance sheet serves as a snapshot of the company at one point in time, whereas the income statement and statement of retained earnings cover a period of time. Assets are recorded with their historical cost (price at purchase), rather than fair market value. A balance sheet is an extended form of the accounting equation. An accounting equation is: Assets = Liabilities + Equity. Components of a balance sheet are as follows: Assetswhat a company owns Liabilitieswhat a company owes Equitynet worth of a company Part II Item 2 Information Processing

Introduction It is imperative that a business develops a reliable accounting system to capture and summarize its voluminous transaction data. In general terms, an accounting system is a system where transactions and events are reliably processed and summarized into useful financial statements and reports. The heart of the system will contain the basic account cycle tool: accounts, debits and credits, journals, and general ledger. What follows are general definitions and principles that will help better understand Planet Expresss accounting cycle. Accounts It is imperative that a business develops a reliable accounting system to capture and summarize its voluminous transaction data. In general terms, an accounting system is a system where transactions and events are reliably processed and summarized into useful ! 3!

financial statements and reports. The heart of the system will contain the basic account cycle tool: accounts, debits and credits, journals, and general ledger. Double-Entry Bookkeeping The process by which accounting transactions are entered; each individual transaction always has an offsetting transaction(s). Debits and Credits Debits (abbreviated dr) and credits (abbreviated cr) are unique accounting tools to describe the change in a particular account that is necessitated by a transaction. In other words, instead of saying that cash is increased or decreased, accountants say the cash is debited or credited. Every transaction can be described in debit/credit form and for every transaction, debits will always equal credits. Debits/Credit Rules Assets, Expenses, Dividends These three types of accounts follow the same debit/credit rules. Debits increase these accounts and credits decrease these accounts. Liabilities, Revenues, Equities These accounts follow the rules that are opposite from the ones described above. Credits increase liabilities, revenues, and equity, while debits result in decreases. Accrual Accounting Accounting standards require accounting be done on accrual basis. Business transactions are recorded when they occur and not when the related payments are received or made. This concept is called accrual basis of accounting and it is fundamental to the usefulness of financial accounting information. This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows to give a more accurate picture of a company's current financial condition. There are several types of accruals and deferrals. Accrued revenues are revenues earned but not yet received in cash or previously recorded. Accrued expenses are expenses incurred but not yet paid in cash or previously recorded. Deferred revenues are liabilities resulting from the receipt of cash before the recognition of revenue (unearned revenue is considered a liability since the company owes its customers). Finally, deferred expenses are assets resulting from the payment of cash before the actual incurrence of the expense. Articulation It is important to take note of the fact that the income statement, statement of retained earnings, and balance sheet articulate. This means they act together in a selfbalancing fashion. The income for the period ties into the statement of retained earnings, and the ending retained earnings ties into the balance sheet. This final tie-in causes the balance sheet to balance. Revenue Recognition Revenue recognition principle tells that revenue is to be recognized only when the rewards and benefits associated with the items sold or service provided is transferred,

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where the amount can be estimated reliability and when the amount is recoverable. Accrual basis of accounting is used in recognizing revenue which tells that revenue is to be recognized ignoring when the cash inflows occur. Matching Principle In order to reach accurate net income figure the expenses incurred in earnings revenues recognized in a time period should be recognized in that time period and not in the next or previous. This is called matching principle. Materiality Financial statements are prepared to help the users with their decisions. Hence, all such information that has the ability to affect the decisions of the users of financial statements is material and this property of information is called materiality. In deciding whether a piece of information is material or not requires considerable judgment. Information is material either due to the amount involved or due to the importance of the event. Materiality might be based on a percentage of sales such as 0.5% of sales or on total assets. Materiality is helpful in determining which figures are to be reported on income statement and balance sheet and which one in the notes. It is also helpful in helping decide which items should appear as line items and which ones are aggregated with others.

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Part III Item 3 Accounting Cycle Introduction The following section will explain the steps of the typical accounting cycle from the perspective of a small delivery company called Planet Express. Its accountant, Hermes Conrad, will detail the steps he follows and the documents he creates during Planet Expresss accounting period. Here are the steps in the accounting cycle:

Journal Entries The first step in the accounting cycle is the collection, analyzing, and recording of the data reflecting the transactions of the business. This data comes in a variety of forms, often called source documents. Source documents are documents generated either externally or internally that provide the necessary information to record accounting information. Such source documents come in the form of checks, purchase orders, and

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invoices. Transactions of particular importance are events that would change the value of its assets, liabilities, or equities. After analyzing the transactions, events, and source documents, the company is now ready to journalize. When the company journalizes the accountant applies the rules of double-entry accounting. Remember that double-entry accounting means that each transaction must be recorded in at least two accounts or that the debits must equal the credits. After applying the rules of debits and credits, the accountant should then record the transactions in a journal, or journalize. A general journal is a chronological listing of each transaction of the business in debit/credit form. Planet Express is a delivery company incorporated in the state of Texas. They are a relatively new company that just finished their first month of operation. Their accountant is Hermes Conrad. The balance sheet on June 31 of Planet Express appears below.
Planet Express Balance Sheet, June 31 Assets Current Assets: Cash Equipment Supplies Total: $10,000 5,000 3,000 $18,000 Liabilities and Shareholders Equity Liabilities: Accounts Payable: Wong Total Liabilities Common Stock Retained Earnings Total: $8,000 $8,000 10,000 0 $18,000

During July of operation of 2011, the company engaged in the following transactions:

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No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Date July 1 July 1 July 3 July 4 July 7 July 8 July 10 July 12 July 14 July 20 July 23 July 25 July 31 July 31 Paid $8,000 on its account due to Wong

Transaction Received $65,000 from new investors, issued $65,000 of common stock Company purchased $12,000 of equipment in cash Provided $50,000 in services to customer. Customer pays half and promises to pay the rest. Completed delivery for customer, customer paid $1,000 in cash Paid $8,000 in salaries to employees Company pays $30,000 in advance for 3 months rent Received $2,000 from customer for future delivery Company pays a cash dividend in the amount of $5,000 Company purchases $5,000 of office supplies on credit Paid the accounts payable on supplies purchased on 7/20 Received utility bill of $3,000 Company purchases $3,000 in fuel Paid $2,000 for equipment worth $4,000. The remaining amount is on a payable note.

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!
Ref. a b

The next table shows how Hermes would journalize the above events:
Date July 1 Accounts Payable: Wong Cash To record payment to Wong c d e f g h i j k l m n o p q r s t u v w x y z aa bb cc dd July 31 Equipment Cash Notes Payable To record purchase of equipment July 31 Fuel Expense Cash To record purchase of fuel 4,000 2,000 2,000 July 25 Utility Expense Utilities Payable To record receipt of utility bill 3,000 3,000 July 23 Accounts Payable Cash To record payment of supplies on 7/20 3,000 3,000 July 20 Supplies Accounts Payable To record purchase of supplies 5,000 5,000 July 14 Dividends Cash To record payment of dividends 5,000 5,000 July 12 Cash Unearned Revenue To record receipt of payment 5,000 5,000 July 10 Prepaid Rent Expense Cash To record payment of rent 2,000 2,000 July 8 Salary Expense Cash To record payment of salary 30,000 30,000 July 7 Cash Service Revenue To record receipt of payment 8,000 8,000 July 4 Cash Accounts Receivable Service Revenue To record receipt of payment 1,000 1,000 July 3 July 1 Cash Common Stock Issued $65,000 worth of stock Equipment Cash To record purchase of equipment 25,000 25,000 50,000 12,000 12,000 65,000 65,000 Account Dr $8,000 $8,000 Cr

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At the end of the period, Hermes will post all of the journal entries to ledger accounts in the Planet Expresss General Ledger. Ledger Accounts The second step in the accounting cycle is to post the journal entries to the ledger accounts. The compilation of all these accounts is the general ledger. Posting involves transferring information from the journal to the ledger. A ledger is simply a collection of all accounts it shows all of the number detail about a companys accounts. After posting all the journal entries, the balance of each account must be calculated. For purposes of teaching and simplicity, Hermes uses T-Accounts for Planet Expresss general ledger. Planet Expresss Ledger Accounts derived from its journal entries are as follows: Asset Accounts
Cash Dr $10,000 (c) 65,000 (g) 25,000 (j) 1,000 (p) 2,000 Cr (a) $8,000 (f) 12,000 (m) 8,000 (o) 30,000 (s) 5,000 (w) 5,000 (aa) 3,000 (cc) 2,000 $30,000 Equipment Dr $5,000 Accounts Receivable Dr (h) $25,000 $25,000 Cr (e) 12,000 (bb) 4,000 $21,000 Cr Supplies Dr $3,000 (t) 5,000 $8,000 Cr

Prepaid Rent Dr (n) $30,000 $30,000 Cr

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Liability Accounts
Unearned Revenue Dr Cr (q) $2,000 (a) 8,000 $2,000 (v) 5,000 Utilities Payable Dr Cr (y) $3,000 $3,000 Notes Payable Dr Cr (dd) $2,000 $2,000 $0 (u) 5,000 Accounts Payable Dr Cr $8,000

Equity Accounts
Common Stock Dr Cr $10,000 (d) 65,000 $75,000

Revenue, Dividend, and Expense Accounts

Services Dr Cr (i) $50,000 (k) 1,000 Utility Expense Dr (x) $3,000 $3,000 Cr Salary Expense Dr (l) $8,000 $8,000 Cr

$51,000 Fuel Dividend Dr (r) $5,000 $3,000 $5,000 Cr Dr (z) $3,000 Cr

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Unadjusted Trial Balance To verify that the companys debits equals the credits, an unadjusted trial balance is prepared. A trial balance is a list of all accounts and their balances at a point in time. This is the fourth step of the accounting cycle. The account balances from the ledger is used to create the trial balance. We call this trial balance an unadjusted trial balance because it is prepared before the adjusting entries. Because of Double-Entry Accounting, Hermes will record each transaction where the debits should always equal the credits. Any difference indicates a mistake in either the recording process or calculations. Hermes has prepared the following unadjusted trial balance based off Planet Expresss general ledger:
Unadjusted Trial Balance Planet Express July 31, 2011 Debit Cash Supplies Prepaid Rent Accounts Receivable Equipment Utilities Payable Notes Payable Accounts Payable Unearned Revenue Service Revenue Common Stock Salary Expense Utility Expense Dividend Fuel Expense 8,000 3,000 5,000 3,000 $133,000 $133,000 $30,000 8,000 30,000 25,000 21,000 $3,000 2,000 0 2,000 51,000 75,000 Credit

Adjusting Entries The fifth step in the accounting cycle is to prepare adjusting entries. Adjusting entries involve bringing an asset or liability account balance to its proper amount and updating the corresponding revenue or expense account. Adjusting entries are recorded in the general journal and then posted to the ledger. All adjusting entries are made at the end of the accounting time period. The purpose of adjusting entries is to match revenues and expenses to the current accounting period that is required by the matching principle of accounting. Adjustments include accruals and prepayments. Accrual entries are used to record accrued revenues or expenses that should be matched to the current accounting period. Prepayments are any prepaid expense or unearned revenue so that the revenues and expenses match within the accounting period.

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Hermes must consider the relevant information when preparing the adjusted entries for Planet Express: (1) Prepaid rent of $30,000 was paid for the months of July, August, and September. (2) Only $1,500 worth of service was provided to a customer who paid $2,000 in advance. The adjusted entries of Planet Express are as follows:
Date July 31 Account Rent Expense Prepaid Rent $30,000/3=$10,000 July 31 Unearned Revenue Service Revenue $1,500 $1,500 Dr $10,000 $10,000 Cr

Adjusted Trial Balance After the adjusting entries have been posted, the Hermes will prepare another trial balance. This trial balance is called the adjusted trial balance because it is prepared AFTER the adjusting entries. This trial balance is used to verify that the debits equal the credits and also is used to prepare the financial statements. Planet Expresss adjusted trial balance is as follows:
Adjusted Trial Balance Planet Express July 31, 2011 Debit Cash Supplies Prepaid Rent Accounts Receivable Equipment Utilities Payable Notes Payable Accounts Payable Unearned Revenue Service Revenue Common Stock Salary Expense Utility Expense Dividend Fuel Expense Rent Expense 8,000 3,000 5,000 3,000 10,000 $133,000 $133,000 $30,000 8,000 20,000 25,000 21,000 $3,000 2,000 0 500 52,500 75,000 Credit

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Six-Column Worksheet After determining that the debits equal the credits in the adjusted trial balance, Hermes will use a worksheet to aid in the closing process and in the preparation of financial statements. The worksheet allows Hermes to separate the revenue, gain, expense, and loss accounts in the trial balance that flow into the income statement and the asset, liability, and equity accounts that will appear on the balance sheet. Hermes six-column worksheet for Planet Express is as follows:

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Planet Express Six-Column Worksheet Account Dr Cash Supplies Prepaid Rent Accounts Receivable Equipment Utilities Payable Notes Payable Accounts Payable Unearned Revenue Service Revenue Common Stock Salary Expense Utility Expense Dividend Fuel Expense Rent Expense Subtotals Net Income Totals 8,000 3,000 5,000 3,000 10,000 $133,000 $133,000 $30,000 8,000 20,000 25,000 21,000 $3,000 2,000 0 500 52,500 75,000 8,000 3,000 5,000 3,000 10,000 29,000 23,500 $52,500 $52,500 $104,000 52,500 104,000 80,500 23,500 $104,000 $52,500 75,000 Trial Balance Cr Dr Income Statement Cr Dr $30,000 8,000 20,000 25,000 21,000 $3,000 2,000 0 500 Balance Sheet Cr

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Financial Statements Now that the adjusted trial balance has been prepared the next step is to prepare the financial statements. Financial statements are a set of numeric records that summarize the financial activities, financial position, and performance of a business. The financial statements must be prepared in a very specific order. The order for the financial statements is: income statement, statement of retained earnings, balance sheet, and then statement of cash flows, and statements of changes in equity. This order is important because information provided in the income statement is used in the statement of retained earnings, and information from the statement of retained earnings is used in the balance sheet. Planet Expresss Income Statement and Balance Sheet for the period of July 31, 2011:
Income Statement of Planet Express As of July 31, 2011 Dr Revenue Less: Expenses: Wage Expense Rent Expense Utility Expense Fuel Expense Total Expenses: Net Income $8,000 10,000 3,000 3,000 (24,000) $28,500 Balance Sheet for Planet Express As of July 31, 2011 Assets Current Assets: Cash Accounts Receivable Supplies Prepaid Rent Total: Non-Current Assets: Equipment Total: 21,000 $104,000 $30,000 25,000 8,000 20,000 83,000 Liabilities and Shareholders Equity Liabilities: Accounts Payable Utilities Payable Unearned Revenue Notes Payable Total Liabilities: Common Stock Retained Earnings $0 3,000 500 2,000 5,500 75,000 23,500 $104,000 Cr $52,500

Closing Entries Step eight in the accounting cycle is to prepare the closing entries. Closing entries are prepared after the financial statements are completed. The purpose of closing entries is to prepare the accounts for recording transactions and events for the next period. Accounts are closed by transferring their balances to permanent accounts. For example,

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retained earnings is a permanent account that keeps track of all the net income from every year and is where dividends are paid from. Therefore, their balances will become zero. Closing entries are based on the account balances in the adjusted trial balance. Temporary accounts include: Revenue and Accounts Expense and Loss Accounts Dividend, Drawings, or Withdrawals Accounts Income Summary Account Planet Expresss closing entries are as follows:
Note 1 Date July 31 Account Service Revenue Income Summary 2 July 31 Income Summary Salary Expense Rent Expense Utility Expense Fuel Expense 3 July 31 Income Summary Retained Earnings 4 July 31 Retained Earnings Dividends 5,000 5,000 28,500 28,500 24,000 8,000 10,000 3,000 3,000 Dr $52,500 $52,500 Cr

The accompanying notes to consolidated financial statements are an integral part of this statement. Note 1Service revenue account is debited and income summary account is credited to transfer the balance of service revenue account to income summary account. Note 2Each expense account is credited and the income summary is debited for the sum of the balances of expense accounts. This will reduce the balance in income summary account. Note 3Income summary account is debited and retained earnings account is credited for the an amount equal to the excess of service revenue over total expenses i.e. the net balance in income summary account after posting the first two closing entries. Note 4The last closing entry transfers the dividend or withdrawal account balance to the retained earnings account. Since dividend and withdrawal accounts are contra to the retained earnings account, they reduce the balance in the retained earnings account.

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Post-Closing Trial Balance Step nine, and Planet Express the last step in the accounting cycle, is to prepare a post-closing trial balance. A post-closing trial balance should only contain the debit and credit balance for permanent accounts, because these are the only accounts that are remaining after the closing process. Once again the purpose of this trial balance is to ensure that the debits equal the credits and that all temporary accounts have a zero balance. Here is Planet Expresss post-closing trial balance after posting the closing entries to its general ledger and calculating new account balances:
Post Closing Trial Balance Planet Express As of July 31, 2011 Dr Cash Supplies Prepaid rent Accounts Receivable Equipment Utilities Payable Notes Payable Accounts Payable Unearned Revenue Common Stock Retained Earnings Total: $104,000 $38,000 5,000 20,000 25,000 16,000 $3,000 2,000 0 500 75,000 23,500 $104,000 Cr

Planet Express is now ready to start the new accounting period.

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SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PLANET EXPRESS, INC. By: Hubert J. Farnsworth Hubert J. Farnsworth Chief Executive Officer and President /s/

Date: July 22, 2011 Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature Title Date

Principal Executive Officer and Director: /s/ Hubert J. Farnsworth Hubert J. Farnsworth Director, Chief Executive Officer and President July 22, 2011

Principal Financial Officer: /s/ John A. Zoidberg John A. Zoidberg Chief Financial Officer July 22, 2011

Principal Accounting Officer: /s/ Hermes Conrad Hermes Conrad Corporate Controller July 22, 2011

Directors: /s/ Philip J. Fry Philip J. Fry Turanga Leela Turanga Leela Director, Chairman of the Board July 22, 2011

/s/

Director

July 22, 2011

/s/

Bender B. Rodriguez Bender B. Rodriguez /s/ Amy Wong Amy Wong Zapp Brannigan Zapp Brannigan

Director

July 22, 2011

Director

July 22, 2011

/s/

Director

July 22, 2011

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