Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you help me with part f i provided evrything else. Prepare and post transaction, adjusting, and closing entries; prepare adjusted trial balance; prepare financial

can you help me with part f i provided evrything else.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Prepare and post transaction, adjusting, and closing entries; prepare adjusted trial balance; prepare financial statements. ACR11.1 ( LO2,3,4 ) Hampton Corporation's statement of financial position at December 31, 2020, is presentec below. During 2021, the following transactions occurred. 1. Issued 500 shares of $2.80 noncumulative preferred shares for $50,000. Hampton is authorized to issue 50,000 preferred shares. 2. Issued 500 common shares for $30,000. 3. Sold inventory for $320,000 on account and $100,000 for cash. Hampton uses a perpetual inventory system and its cost of goods sold for this total transaction was $250,000. Hampton has not historically experienced any sales returns. 4. Collected $296,000 from customers on account. 5. Bought $35,100 of supplies on account. 6. Purchased $330,000 of inventory on account, terms 2/10,n/30. 5. Bought $35,100 of supplies on account. 6. Purchased $330,000 of inventory on account, terms 2/10, n/30. 7. Paid $322,000 on accounts payable related to purchases of merchandise in transaction 6 , within the 10-1 discount period. 8. Paid salaries of $88,200. 9. Wrote off an account receivable of $1,700, which originated in 2020 , as uncollectible. 10. Paid $2,000 on the mortgage principal during the year, and $4,000 of interest. 11. Near the end of the current fiscal year, Hampton declared the annual preferred share cash dividend and a $4,200 common share cash dividend, to shareholders of record on January 13,2022 , payable on January: 2022. Adjustment data: 1. A count of supplies indicates that $5,900 of supplies remain unused at year end. 2. Estimated uncollectible accounts were $3,500 at year end. 3. Depreciation is recorded on the building on a straight-line basis based on a 30 -year life and a residual valuc $10,000. 4. Interest of $350 is owed on the mortgage at year end. The current portion of the mortgage due is $2,500. 5. The bank statement included a service charge of $3,000. 6 . Income tax of $6,000 is estimated to be due. Instructions a. Record the 2021 summary transactions numbered (1) through (11). b. Set up T accounts, enter any opening balances, and post the general journal entries prepared in part (a). c. Record and post the adjusting journal entries (1) through (6) shown above at December 31 , assuming adjusting entries are prepared annually. d. Prepare an adjusted trial balance as at December 31 . e. Prepare a (1) statement of income, (2) statement of changes in equity, and (3) statement of financial position. f. Prepare and post any required closing journal entries. b) T accounts for the entries posted in part (a) \begin{tabular}{|l|r|l|r|} \hline \multicolumn{3}{|c|}{ Security Premium Account } \\ \hline Opening balance & 0 & Closing balance & 73600 \\ \hline Cash (Preferred Shares) & 48600 & & \\ \hline Cash (Common S hares) & 25000 & & \\ \hline Total & 73600 & Total & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|r|} \hline \multicolumn{3}{|c|}{ CASH } \\ \hline Accounts payable & 322000 & Balance b/l & 24000 \\ \hline Salary paid & 88200 & Preterred Shares & 50000 \\ \hline Mortgage payabl e & 2000 & Common Shares & 30000 \\ \hline interest expense & 4000 & Cash Sales & 100000 \\ \hline Balance cit & 83800 & Accounts receiva bles & 296000 \\ \hline & 500000 & Total & \\ \hline Total & & & 500000 \\ \hline \end{tabular} \begin{tabular}{|l|r|l|r|} \hline \multicolumn{3}{|c|}{ Accounts Receivables } \\ \hline Cash & 296000 & Opening badance & 45500 \\ \hline Bad debts & 200 & Sales & 320000 \\ \hline Allowance for dou btful & 1500 & & \\ \hline Closing balance & 67800 & & \\ \hline Total & 365500 & Total & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|r|} \hline \multicolumn{3}{|c|}{ Allowance for doubtful debts } \\ \hline Opening bal & 1500 & Accounts receiva ble & 1500 \\ \hline & & Closing balance & 0 \\ \hline Total & 1500 & Total & 1500 \\ \hline \end{tabular} \begin{tabular}{|l|r|l|r|} \hline \multicolumn{3}{|c|}{ Inventory } \\ \hline COGS & 250000 & Opening & 70000 \\ \hline \end{tabular} \begin{tabular}{|l|r|l|r|} \hline \multicolumn{3}{|c|}{ Inventory } \\ \hline COGS & 250000 & Opening & 70000 \\ \hline Closing balance & 150000 & Purchases & 330000 \\ \hline Total & 400000 & Total & 400000 \\ \hline \end{tabular} \begin{tabular}{|l|r|l|r|} \hline \multicolumn{3}{|c|}{ Supplies } \\ \hline & & Opening bal & 4400 \\ \hline & & Purchases & 35100 \\ \hline Total & 0 & Total & 39500 \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline \multicolumn{3}{|c|}{ Sales } \\ \hline Cash & 100000 & & \\ \hline Accounts receiva bles & 320000 & & \\ \hline & & & \\ \hline & 420000 & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Cost of Goods Sold } \\ \hline & & Inventory & 250000 \\ \hline & & & \\ \hline & & & 250000 \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline \multicolumn{3}{|c|}{ Discount received } \\ \hline Accounts Payabl e & 6571.43 & & \\ \hline & & & \\ \hline & 6571.43 & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|r|} \hline \multicolumn{3}{|c|}{ Salaries } \\ \hline & & Cash & 88200 \\ \hline & & & 88200 \\ \hline & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|r|} \hline \multicolumn{3}{|c|}{ Salaries } \\ \hline & & Cash & 88200 \\ \hline & & & \\ \hline & & & 88200 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Bad Debts } \\ \hline & & Accounts receiva bles & 200 \\ \hline & & & \\ \hline & & & 200 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Interest expense } \\ \hline & & Cash & 4000 \\ \hline & & & \\ \hline & & & 4000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & Account & Dr & Cr \\ \hline & Supplies & $5,900 & \\ \hline & income summary account & & $5,900 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & Account & Dr & Cr \\ \hline & Depreciation Expense & $4,400 & \\ \hline & Accumulated Depreciation & & $4,400 \\ \hline \end{tabular} \begin{tabular}{|r|r|r|r|} \hline Date & Account & Dr & \multicolumn{1}{c|}{Cr} \\ \hline & Interest Expense & $350 & \\ \hline & interest payable & & $350 \\ \hline \end{tabular} \begin{tabular}{|r|r|r|r|} \hline Date & Account & Dr & \multicolumn{1}{c|}{Cr} \\ \hline & Mortgage payable & $2,500 & \\ \hline & Mortage payable_current & & \\ \hline portion & & $2,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline Date & Account & Dr & Cr \\ \hline & Current tax expenses & $6,000 & \\ \hline Provision for income tax & & $6,000 \\ \hline \end{tabular} e1. Income Statement - e2. Statement of Changes in Equity - Hampton Corporation Statement of Changes in Equity For the Year Ended December 31, 2021 e3. Balance Sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Foundations And Evolutions

Authors: Michael R. Kinney, Jenice Prather-Kinsey, Cecily A. Raiborn

6th Edition

0324235011, 978-0324235012

More Books

Students also viewed these Accounting questions

Question

Where did the faculty member get his/her education? What field?

Answered: 1 week ago

Question

=+Could you use an ambient ad?

Answered: 1 week ago