Company Information

Indiana Accounting Service Inc. is a public corporation that has been in business for 1 year. The IPO for the company authorized 100,000 shares of common stock at $1 par value. The company provides accounting services and sells accounting software.

To date the company has issued 20,000 shares of common stock, which are still outstanding. The issued shares were sold at $10 per share. A Building and Furnishings were purchased at the start of the year. The cost of the building was $150,000 and the cost of the furnishings was $30,000. The depreciation will be recorded annually. The estimated useful life of the building is 20 years with a residual value of $10,000 and uses the Straight line method. The estimated useful life of the furnishings is 5 years with a residual value of $2,500 and uses the DDB method. The current inventory consists of 30 units of software at a cost of $140.00 each. Inventory is cost using LIFO and the perpetual inventory system. The company uses an allowance method to account for uncollectible accounts. It is estimated that 1% of net credit revenue will be uncollectible, adjusted monthly. Employees are paid $2,500 salary twice a month, on the 16^th for the first half of the month and on the 2^nd of the following month for the last half of the month. Use the Calculations worksheet for calculations of Inventory record, Depreciation, and Uncollectible Accounts Expense. Ignore income tax calculations.

Project Requirements

Part 1. Opening balances- The opening balances for select accounts are provided in the appropriate ledger accounts. All required ledger accounts are provided. (I did it. Please double check if they are all correct and continue answering from part 2.)

Date	Accounts and Explanation	Debit	Credit
12/2/14	Inventory	1300
	Account Payable		1300
	Purchased 10 Units of Software on Account for $1300
12/2/14	Salaries Expense	2500
	Cash		2500
	Paid Employees Salaries Owed
12/2/14	Account Receivable	3200
	Service Revenue		3200
	Provided Accounting Service on Account, $3200
12/5/14	Office Equipment	4800
	Account Payable		4800
	Purchased Office Equipment on Account, $4800
12/8/14	Supplies	950
	Cash		950
	Purchased Supplies for $800 Cash
12/10/14	Cash	3000
	Account Receivable		3000
	Received $3000 Payment on Account
12/11/14	Account Receivable	4500
	Inventory		4500
	Sold 15 Units of Inventory on Account, $4500
12/11/14	Account Payable	1200
	Cash		1200
	Made Payment on Account
12/12/14	Inventory	2400
	Account Payable		2400
	Purchased Inventory on Account
12/14/14	Advertising Expense	375
	Cash		375
	Paid for Advertising
12/15/14	Cash	8000
	Service Revenue		8000
	Provided Accounting Service for Cash
12/16/14	Salaries Expense	2500
	Cash		2500
	Paid Salaries for December 1st-15th
12/17/14	Account Receivable	6000
	Service Revenue		6000
	Provided Accounting Service on Account
12/19/14	Inventory	3000
	Account Payable		3000
	Sold Inventory on Account
12/22/14	Cash	2500
	Accounts Receivable		2500
12/23/14	Accounts Payable	2800
	Cash		2800
	Made Payment on Account
12/24/14	Utility Expense	850
	Cash		850
	Paid Monthly Utility Bills
12/27/14	Cash	2000
	Unearned Service Revenue		2000
	Received advance cash for accounting service
12/29/14	Cash	5000
	Service Revenue		5000
	Provided Accounting Service for Cash
12/30/14	Cash	15000
	Common Stock		1000
	Additional Paid in Capital		14000
	Issued Common Stock
12/31/14	Retained Earnings	31500
	Dividents Payable		31500
12/31/14	Dividend Payable	31500
	Cash		31500

(Especially, the last three parts? Are they all correct?)

2. Record the following transactions in the journal. The journal is provided. Record explanation on the last line for each journal entry:

12/02/14- Purchased 10 Units of Software on Account for $1,300

12/02/14- Paid employees Salaries owed from November 16^th-30^th

12/02/14- Provided Accounting Service on Account, $3,200

12/05/14- Purchased Computer Equipment on Account, $4,800

12/08/14- Purchased Supplies for $950 cash

12/10/14- Received $3,000 payment on account

12/11/14- Sold 15 units of Inventory on Account, $4,500

12/11/14- Made payment on Account, $1,200

12/12/14- Purchased 20 units of Inventory on Account, $2,400

12/14/14- Paid for Advertising, $375

12/15/14- Provided Accounting service for Cash, $8,000

12/16/14- Paid employees salary for December 1^st -15^th

12/17/14- Provided Accounting Service on Account, $6,000

12/19/14- Sold 10 units of Inventory on Account, $3,000

12/22/14- Received $2,500 payment on Account

12/23/14- Made payment on Account, $2,800

12/24/14- Paid monthly Utility bills, $850

12/27/14- Received $2,000 cash in advance for Accounting service

12/29/43- Provided Accounting Service for Cash, $5,000

12/30/14- Issued 1,000 shares of Common Stock at $15 per share

12/31/14- Declared and paid dividends of $1.50 to outstanding shareholders as of 12/31/14.

Part 3. Post to the ledger for each of the recorded journal entries. Reference each entry from the journal. Create formula for each ledger to calculate the appropriate balance.

Part 4. Prepare a trial balance, using the worksheet, to verify that total debits equal total credits. Reference account balances from the ledger. Create formula to calculate all balances in the worksheet.