CHART OF ACCOUNTS Cash Accounts Receivable Prepaid Insurance Land Equipment Accumulated Depreciation Vacation Pay Payable Interest Payable Notes Payable Common Dividends Payable Preferred Dividends Payable Bonds Payable Bond Discount Common Stock PIC in Excess of Par - Common Stock Preferred Stock PIC in Excess of Par Preferred Stock PIC - Treasury Stock Stock Dividend Distributable Retained Earnings Treasury Stock Fees Earned Advertising Expense Commissions Expense Depreciation Expense Insurance Expense Legal & Accounting Expense Medical Insurance Expense Miscellaneous Expense Rent Expense Salary Expense Utilities Expense Vacation Pay Expense Interest Expense ACCT 101 Fundamentals of Accounting I COMPUTER/GROUP PROJECT Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The charter of the corporation authorized 500,000 shares common stock, and 100,000 shares of $30 par, 4%, preferred stock, 1, 2020, there were 24,000 shares of common stock issued and outstanding 5,000 shares of preferred stock issued and outstanding of $2 par As of January nd Selected transactions completed by Sharpe Incorporated ending December 31, 2020, are as follows: during the fiscal year- Jan 1 Issued 12,500 shares of $2 par common stock at $2, receiving cash. Jan/ 1 Issued 5,800 shares of $30 par, 4%, preferred stock at S70 for cash. 1 Purchased equipment for $195,000, paying $15,000 cash and financing the remainder with a 180-day, 6% note payable. Mar 15 Purchased land for $352,000 by issuing 20,000 shares of common stock Maf 31 Purchased a two-year insurance policy for $36,600. Ma 1 Purchased 1,750 shares of the company's own common stock at $22 per May31 issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually. July 30 Paid the amount due on the note payable signed on February 1. Aug/1 Sold 430 shares of treasury common stock purchased on May 1 for $25 per Sept 15 Declared a 2% stock dividend on common stock to be distributed on share. The amount of cash received was $926,896 September 30 to stockholders of record on September 20. The market price per share on September 15 is $25 per share Sept 30 Distributed the stock dividend declared September 15. Borrowed $40,000 from Second Bank by issuing an 796 note. The note is to be repaid in quarterly payments of principal plus interest totaling $1,860 per quarter. Oct 1 Oct 16 Sold 370 shares of treasury common stock purchased on May 1 for $18 per share Step 2 - Journalize the transactions Record the transactions for Sharpe Inc. in the general journal. There is no journal form provided, you will need to use your own must use a journal form to record the transactions and your journal entries must be hand written. Do not record the adjusting entries just yet, only the transactions through journal forms or print some from my website. You December 31, 2020. Use only the accounts provided. Please refer to the chart of accounts in the Excel file you d from my website for a list of accounts. Round all amount to the nearest whole dollar. Step 3 - Post the transactions to the T-accounts Post your journal entries to the T-Accounts in the Excel worksheet you saved from my website. The amounts already in the T-Accounts are the beginning balances and should be included in your balances. You do not need to use a posting reference. Do not add any new accounts, all the accounts you need have already been set up. The account balance will update with each posting. Do not do the adjustments yetl When posting the transactions to the T-accounts, start in the top cell of each T-account for both debits and credits and do not skip any lines. Step 4 Prepare a Trial Balance Click on the Trial Balance tab and prepare the Trial Balance. The total of the Trial Balance should be $4,346,028. If your balance does not agree, make any necessary corrections before you proceed. 4 6 nter step 5 Prepare Adjusting Entries Record the adjusting entries in the journal after the journal entries you recorded in step #2. Skip a line after the last entry and write "Adjusting Entries" in the middle of the account column then journalize the adjusting entries. You do not need an explanation, but skip a line between entries. All the adjusting entries should be dated December 31. Post the adjusting entries to the T-Accounts in Excel. Step 6 - Prepare an Adjusted Trial Balance Click on the Adjusted Trial Balance tab and prepare the Adjusted Trial Balance. The total of the Adjusted Trial Balance should be $4,383,321. If your balance does not agree, make any necessary corrections before you proceed. Step 7 - Prepare the Income Statement Click on the Income Statement tab in the Excel file to prepare the Income Statement using the amounts from the Adjusted Trial Balance. The Income Statement has been formatted using the outlined cells. Entries should only be made in the outlined cells. The exact number of rows needed are outlined so you should not add any rows or columns to the Income Statement. The Net Income should be $672,951 Step 8 - Prepare a Retained Earnings Statement and Balance Sheet Prepare the Retained Earnings Statement and the Balance Sheet the same way you did the Income Statement using the amounts from the Adjusted Trial Balance. Both statements have been formatted with the exact number of rows needed. Entries should only be made in the outlined cells; do not add any rows or columns. The Total Assets should be $2,973,019 When printing your reports, please format each sheet to print on one page. Each of the following reports (except the Journal) should each be only ONE page. Turn in the following items (stapled in the order listed belout Cover Sheet (include each group member's name Journal Entries . T-Accounts Trial Balance Adjusted Trial Balance Income Statement . Retained Earnings Statement .Balance Sheet is due during the scheduled Final Exam on Thursday, December 13, 2018, and The project will not be accepted late or via email. D E Retaned Earningsalcctg Expense Vacation P Common Stock 48,000 90,000 90,000 Interest Medical Ins Ex 48,000 Treasury Stock PIC- Common Stock Nates Payable Miscellaneous Expense 335,000 Fees Eamed 77,000 Accounts Receivable Rent Ex Common Dividend Payable Advertising Ex urance PIC Preferred Stock Preferred Didend Payable Commission Ex PIC Tr Land Bonds Payable Depreciation Expense Vacation P Stock D. Distibutable Bond Discount Insurance Expense Interest Expense Accum T. Accts Trial Balance Adj Trial Balance Income Stmt Ret Earn. Stmt Balance Sheet Chart of Accts Sharpe Incorporated Trial Balance December 31, 2020 Account Name Debit Credit 12 14 19 23 30 36 Trial Balance Adj. Trial Balanceincome StkRet Earn. Stm Balance Sheet O Type here to search 1 Names Sharpe Incorporated Adjusted Trial Balance December 31, 2020 5 Account Name Debit Credit 10 13 T4 16 17 18 20 23 24 25 26 27 28 30 31 32 37 Chart of Accts T-Accts|Trial Balance Adj. Trial Balance Income Stmt Ret Earn. Stmt O Type here to search UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some , A B Name: Sharpe Incorporated Income Statement For the Year Ended December 31, 2020 Revenue: Operating Expenses 4 51 Other Expense: Net Income 29 30 31 32 24 35 36 Chart of Accts T-Accts Trial Balance Adj. Trial Balance Income Str Ready Type here to search Name: Sharpe Incorporated Statement of Retained Earnings For the Year Ended December 31, 2020 Beginning Retained Earnings Cash Dividends Stock Dividends Treasury Stock Reissuances Ending Retained Earnings 0 2 3 4 5 36 37 38 39 40 Chart of Accts T-Accts Trial Balance Adj. Trial Balance Income St Ready O Type here to search UPBATES Updates for Office are ready to be installed, but first we need to close some AVAILABLE Sharpe Incorporated Balance Sheet December 31, 2020 Assets: Current Assets: Total Current Assets Fixed Assets: Total Fixed Assets TOTALASSETS Liabilities & stockholder's Equity Current Liabilities: Total Current Liabilities Long-Term Liabilities: Total Long-Term uabilities TOTAL LIABILITIES F : Stockholder's Equity Total Paid in Capital Total Chart of Accts T-Accts Trial Balance Adj, Trial Balance/Income Stmt | Ret Earn Stmt eady O Type here to search Total Current Assets Fixed Assets: Total Fixed Assets TOTAL ASSETS Liabilities & Stockholder's Equity Current Liabilities: Total Current Liabilities Long-Term Liabilities: Total Long-Term Liabilities TOTAL LIABILITIES Total Paid In Capital Total TOTAL STOCKHOLDER'S EQUITY TOTAL LIABILITIES & STOCKHOLDER'S EQUITY Chart of Accts T-Accts Trial Balance Adj. Trial Balance Income stm Ret Earn. Stm Ready O Type here to search CHART OF ACCOUNTS Cash Accounts Receivable Prepaid Insurance Land Equipment Accumulated Depreciation Vacation Pay Payable Interest Payable Notes Payable Common Dividends Payable Preferred Dividends Payable Bonds Payable Bond Discount Common Stock PIC in Excess of Par - Common Stock Preferred Stock PIC in Excess of Par Preferred Stock PIC - Treasury Stock Stock Dividend Distributable Retained Earnings Treasury Stock Fees Earned Advertising Expense Commissions Expense Depreciation Expense Insurance Expense Legal & Accounting Expense Medical Insurance Expense Miscellaneous Expense Rent Expense Salary Expense Utilities Expense Vacation Pay Expense Interest Expense ACCT 101 Fundamentals of Accounting I COMPUTER/GROUP PROJECT Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The charter of the corporation authorized 500,000 shares common stock, and 100,000 shares of $30 par, 4%, preferred stock, 1, 2020, there were 24,000 shares of common stock issued and outstanding 5,000 shares of preferred stock issued and outstanding of $2 par As of January nd Selected transactions completed by Sharpe Incorporated ending December 31, 2020, are as follows: during the fiscal year- Jan 1 Issued 12,500 shares of $2 par common stock at $2, receiving cash. Jan/ 1 Issued 5,800 shares of $30 par, 4%, preferred stock at S70 for cash. 1 Purchased equipment for $195,000, paying $15,000 cash and financing the remainder with a 180-day, 6% note payable. Mar 15 Purchased land for $352,000 by issuing 20,000 shares of common stock Maf 31 Purchased a two-year insurance policy for $36,600. Ma 1 Purchased 1,750 shares of the company's own common stock at $22 per May31 issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually. July 30 Paid the amount due on the note payable signed on February 1. Aug/1 Sold 430 shares of treasury common stock purchased on May 1 for $25 per Sept 15 Declared a 2% stock dividend on common stock to be distributed on share. The amount of cash received was $926,896 September 30 to stockholders of record on September 20. The market price per share on September 15 is $25 per share Sept 30 Distributed the stock dividend declared September 15. Borrowed $40,000 from Second Bank by issuing an 796 note. The note is to be repaid in quarterly payments of principal plus interest totaling $1,860 per quarter. Oct 1 Oct 16 Sold 370 shares of treasury common stock purchased on May 1 for $18 per share Step 2 - Journalize the transactions Record the transactions for Sharpe Inc. in the general journal. There is no journal form provided, you will need to use your own must use a journal form to record the transactions and your journal entries must be hand written. Do not record the adjusting entries just yet, only the transactions through journal forms or print some from my website. You December 31, 2020. Use only the accounts provided. Please refer to the chart of accounts in the Excel file you d from my website for a list of accounts. Round all amount to the nearest whole dollar. Step 3 - Post the transactions to the T-accounts Post your journal entries to the T-Accounts in the Excel worksheet you saved from my website. The amounts already in the T-Accounts are the beginning balances and should be included in your balances. You do not need to use a posting reference. Do not add any new accounts, all the accounts you need have already been set up. The account balance will update with each posting. Do not do the adjustments yetl When posting the transactions to the T-accounts, start in the top cell of each T-account for both debits and credits and do not skip any lines. Step 4 Prepare a Trial Balance Click on the Trial Balance tab and prepare the Trial Balance. The total of the Trial Balance should be $4,346,028. If your balance does not agree, make any necessary corrections before you proceed. 4 6 nter step 5 Prepare Adjusting Entries Record the adjusting entries in the journal after the journal entries you recorded in step #2. Skip a line after the last entry and write "Adjusting Entries" in the middle of the account column then journalize the adjusting entries. You do not need an explanation, but skip a line between entries. All the adjusting entries should be dated December 31. Post the adjusting entries to the T-Accounts in Excel. Step 6 - Prepare an Adjusted Trial Balance Click on the Adjusted Trial Balance tab and prepare the Adjusted Trial Balance. The total of the Adjusted Trial Balance should be $4,383,321. If your balance does not agree, make any necessary corrections before you proceed. Step 7 - Prepare the Income Statement Click on the Income Statement tab in the Excel file to prepare the Income Statement using the amounts from the Adjusted Trial Balance. The Income Statement has been formatted using the outlined cells. Entries should only be made in the outlined cells. The exact number of rows needed are outlined so you should not add any rows or columns to the Income Statement. The Net Income should be $672,951 Step 8 - Prepare a Retained Earnings Statement and Balance Sheet Prepare the Retained Earnings Statement and the Balance Sheet the same way you did the Income Statement using the amounts from the Adjusted Trial Balance. Both statements have been formatted with the exact number of rows needed. Entries should only be made in the outlined cells; do not add any rows or columns. The Total Assets should be $2,973,019 When printing your reports, please format each sheet to print on one page. Each of the following reports (except the Journal) should each be only ONE page. Turn in the following items (stapled in the order listed belout Cover Sheet (include each group member's name Journal Entries . T-Accounts Trial Balance Adjusted Trial Balance Income Statement . Retained Earnings Statement .Balance Sheet is due during the scheduled Final Exam on Thursday, December 13, 2018, and The project will not be accepted late or via email. D E Retaned Earningsalcctg Expense Vacation P Common Stock 48,000 90,000 90,000 Interest Medical Ins Ex 48,000 Treasury Stock PIC- Common Stock Nates Payable Miscellaneous Expense 335,000 Fees Eamed 77,000 Accounts Receivable Rent Ex Common Dividend Payable Advertising Ex urance PIC Preferred Stock Preferred Didend Payable Commission Ex PIC Tr Land Bonds Payable Depreciation Expense Vacation P Stock D. Distibutable Bond Discount Insurance Expense Interest Expense Accum T. Accts Trial Balance Adj Trial Balance Income Stmt Ret Earn. Stmt Balance Sheet Chart of Accts Sharpe Incorporated Trial Balance December 31, 2020 Account Name Debit Credit 12 14 19 23 30 36 Trial Balance Adj. Trial Balanceincome StkRet Earn. Stm Balance Sheet O Type here to search 1 Names Sharpe Incorporated Adjusted Trial Balance December 31, 2020 5 Account Name Debit Credit 10 13 T4 16 17 18 20 23 24 25 26 27 28 30 31 32 37 Chart of Accts T-Accts|Trial Balance Adj. Trial Balance Income Stmt Ret Earn. Stmt O Type here to search UPDATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some , A B Name: Sharpe Incorporated Income Statement For the Year Ended December 31, 2020 Revenue: Operating Expenses 4 51 Other Expense: Net Income 29 30 31 32 24 35 36 Chart of Accts T-Accts Trial Balance Adj. Trial Balance Income Str Ready Type here to search Name: Sharpe Incorporated Statement of Retained Earnings For the Year Ended December 31, 2020 Beginning Retained Earnings Cash Dividends Stock Dividends Treasury Stock Reissuances Ending Retained Earnings 0 2 3 4 5 36 37 38 39 40 Chart of Accts T-Accts Trial Balance Adj. Trial Balance Income St Ready O Type here to search UPBATES Updates for Office are ready to be installed, but first we need to close some AVAILABLE Sharpe Incorporated Balance Sheet December 31, 2020 Assets: Current Assets: Total Current Assets Fixed Assets: Total Fixed Assets TOTALASSETS Liabilities & stockholder's Equity Current Liabilities: Total Current Liabilities Long-Term Liabilities: Total Long-Term uabilities TOTAL LIABILITIES F : Stockholder's Equity Total Paid in Capital Total Chart of Accts T-Accts Trial Balance Adj, Trial Balance/Income Stmt | Ret Earn Stmt eady O Type here to search Total Current Assets Fixed Assets: Total Fixed Assets TOTAL ASSETS Liabilities & Stockholder's Equity Current Liabilities: Total Current Liabilities Long-Term Liabilities: Total Long-Term Liabilities TOTAL LIABILITIES Total Paid In Capital Total TOTAL STOCKHOLDER'S EQUITY TOTAL LIABILITIES & STOCKHOLDER'S EQUITY Chart of Accts T-Accts Trial Balance Adj. Trial Balance Income stm Ret Earn. Stm Ready O Type here to search