Hampton Corporation??s balance sheet at December 31, 2011, is presented below. During 2012, the following transactions occurred.1.

Question:

Hampton Corporation??s balance sheet at December 31, 2011, is presented below.

During 2012, the following transactions occurred.1. On January 1, 2012, Hampton issued 1,200 shares of $40 par, 7% preferred stock for $49,200.2. On January 1, 2012, Hampton also issued 900 shares of the $10 par value common stock for $21,000.3. Hampton performed services for $320,000 on account.4. On April 1, 2012, Hampton collected fees of $36,000 in advance for services to be performed from April 1, 2012, to March 31, 2013.5. Hampton collected $276,000 from customers on account.6. Hampton bought $35,100 of supplies on account.7. Hampton paid $32,200 on accounts payable.8. Hampton reacquired 400 shares of its common stock on June 1, 2012, for $28 per share.9. Paid other operating expenses of $188,200.10. On December 31, 2012, Hampton declared the annual preferred stock dividend and a$1.20 per share dividend on the outstanding common stock, all payable on January 15, 2013.11. An account receivable of $1,700 which originated in 2011 is written off as uncollectible.Adjustment data:1. A count of supplies indicates that $5,900 of supplies remain unused at year-end.2. Recorded revenue earned from item 4 above.3. The allowance for doubtful accounts should have a balance of $3,500 at year end.4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $10,000.5. The income tax rate is 30%. Instructions(You may want to set up T accounts to determine ending balances.)(a) Prepare journal entries for the transactions listed above and adjusting entries.(b) Prepare an adjusted trial balance at December 31, 2012.(c) Prepare an income statement and a retained earnings statement for the year ending December 31, 2012, and a classified balance sheet as of December 31,2012.

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