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

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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

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.