Dear Newbie,

Welcome to Hampton! My name is Julio Antoni, your supervisor. We believe the best way for you to get familiar with what you are going to be doing here is to throw you right in, so we are asking you to start working on the books for us right away.

For this project you will complete Hamptons entire accounting cycle. You will be required to record entries in a journal, post to a ledger, complete a trial balance, and prepare financial statements. Transactions will include day to day operations, adjusting entries, dividends and closing entries. All of the work will be completed in the provided Excel workbook (make sure you save the file on to your computer!)

Company Information

Hampton Accounting Service Inc. is a public corporation that has been in business for 1 year. The company is authorized to issue 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 $140,000 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. The company uses the Straight line method to depreciate the building. The estimated useful life of the furnishings is 5 years with a residual value of $2,500. The company uses the Double Declining Balance method to depreciate furnishings. The current inventory consists of 30 units of software at a cost of $140.00 each. Inventory is costed 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. Ignore income tax calculations.

Project Requirements

1. Opening balances- The opening balances for select accounts are provided in the appropriate ledger accounts.
2. Record the following transactions in the journal and post to the ledger:

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

12/02/xx- Paid employees Salaries owed

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

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

Note: The equipment has an estimated useful life of 4 years, residual value of $50 and uses the DDB method.

12/08/xx- Purchased Supplies for $800 cash

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

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

Note: This transaction requires two journal entries. The first entry should deal with the sale, and the second should deal with the inventory

12/11/xx- Made payment on Account, $1,000

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

12/14/xx- Received a bill for Advertising and paid it, $250

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

12/16/xx- Paid employees salary for Dec. 1-15

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

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

Note: This transaction requires two journal entries. The first entry should deal with the sale, and the second should deal with the inventory

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

12/23/xx- Made payment on Account, $2,500

12/24/xx- Received and paid monthly Utility bills, $850

12/27/xx- Received $2,000 cash in advance for accounting services

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

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

12/31/xx- Declared dividends of $1.50 to outstanding shareholders as of 12/31/xx.

Note: Be sure to debit retained earnings and credit dividends payable.

3. Prepare a trial balance to verify that total debits equal total credits.
4. Record the following adjustments in the journal and in the trial balance. DO NOT post the adjusting entries to the ledger. Instead, post them directly as adjustments to the trial balance.

12/31/xx- Employees salary for Dec. 16-31

12/31/xx- Depreciation on Building, use SL method (calculate for entire year)

12/31/xx- Depreciation on Furnishings, use DDB method (calculate for entire year)

12/31/xx- Depreciation on Computer Equipment, use DDB method (calculate for one month)

12/31/xx- Supplies on hand equal $1,625

12/31/xx- Inventory count shows 33 units, some damaged units were disposed of during the month

12/31/xx- $500 of advance payment was earned in December

12/31/xx- Uncollectible Account expense for December

5. Prepare an Adjusted trial balance to verify debits equal credits at the end of the month
6. Prepare the 3 main financial statements for the year ending December 31, 20xx.

Please help with depreciation, income, retained, and balance sheet.

510 Incorrect amount Depreciation Expense Accumulated Depreciation- Furnishings Adj 156 #REF! 510 2,375.00 Adj Depreciation Expense Accumulated Depreciation - Off. Equip. Incorrect amount 2,375.00 Incorrect amount 161 Share 0 Comments insert v Y v Delete Ideas Conditional Format Cell Formatting es Table Styles Sort & Filter Farmatu Find & Select Sensitivity Y 1 L M N P A 5 V w 139, CO 30. DO AutoSave OFF ABESU BUS-A 201 Accounting Cycle Project (1) Home Insert Draw Page Layout Formulas Data Review View Tell me v AA ab Wrap Text [G Pastc BI = = = Merge & Center v A6 fx A 6 H HAMPTON ACCOUNTING SERVICE INC. 2 Ledger NOTE: The table will be shaded blue when you have the correct balance. 4 NOTE: Do not post adjusting entries here. You should post these directly on the "Trial Balance sheet 5 100-Cash 110 - Acun Ieceivable 7 Dan 5 Cpu 3 9.320.00 8 5 3,000.00 $ 0.00 3.200.00 $ 2,500.00 5 R000.00 1,000.00 5 4520.00 10 5 2,500.00 250.00 5 6.000.00 11 $ 2,000.00 $ 2,500.00 5 3.000.00 12 $ 5,000.00 2,500.00 13 $ 15,000.00 $ BS0.00 14 15 16 17 18 15 20 21 Bal $ 155,268.00 S 20.590.00 22 71 115 - Allowance for Uncollect dat 120 - Supplies 24 Dental 5 $ 29 2,229.00 2800.00 2 30 31 32 DARBAI 33 $ 0 130-Inventory 4,200.00 1,300.00 $ 2,400.00 150 - Building 140.000.00 per Bell S S S 5 2,000.00 1,200.00 35 37 Bal $ 4,700.00 140,000.00 151 Acum Depre Building 39 40 Open Bar 155 - Furnishings 20,000.00 Open Bal $ 44 Chart of Accounts A Journal A Trial Balance 2000.00 Ledger A Income Stmt A Stmt of RE A Balance Sheet A Instructor Interface + Ready 3 - 94% 156 - Accum Depre Furnishings 160 - Office Equipment 4,800.00 Open Bal Open Bal $ Bal $ Bal $ 4,800.00 161 - Accum Depre Office Equip Open Bal Open Bal 390.00 $ $ 200-A/P $ 1,000.00 2,500.00 $ S $ 1,300.00 4,800.00 2.400.00 Bal $ Bal $ 5,390.00 210- Unearned Ser. Rev. $ 2,000.00 Open Bal Open Bal 215 - Salary Payable $ 2,500.00 2,500.00 $ Bal $ 2,000.00 Bal $ 220-Dividends Payable $ 31,500.00 Open Bal Open Bal 300- Stock, Common 20,000.00 $ 1,000.00 $ Bal $ 31,500.00 Bal $ 21,000.00 Open Bal 305- Additional Paid in Capital 223,934.00 $ 14,000.00 Open Bal 310- Retained Earnings $ 40,000.00 31,500.00 $ Bal $ 237,934.00 Bal $ 8,500.00 al Open Bal 400 - Service Revenue $ 102,500.00 $ 3,200.00 $ 8,000.00 $ 6,000.00 $ 5,000.00 $ 124,700.00 410 - Sales Revenue $ 16,500.00 $ 4.500.00 $ 3,000.00 Bal $ 24,000.00 510 - Depreciation Expense al $ $ 500 - Advertising Expense 7,589.00 250.00 Open Bal $ 7,839.00 Bal $ 520 - Repairs & Maint Expense 10,567.00 530 - Supplies Expense 3,560.00 al $ Open Bal $ $ 10,567.00 Bal $ 3,560.00 540 - Uncollectible Accts Expense $ 2,039.00 Hal Open Bal $ $ 550 - Utilities Expense 4,719.00 850.00 $ 2.039.00 Bal $ 5,569.00 560 - Cost of Goods Sold 570 - Salary Expense 55,931.00 al 7,700.00 Open Bal $ $ $ $ $ 2,500.00 2,000.00 1,200.00 $ 10,900.00 Bal $ 58,431.00 HAMPTON ACCOUNTING SE Income Statement For the Year Ending December 31, 2020 $ $ Service Revenue Sales Revenue Net Revenue Cost of Goods Sold Gross Profit Operating Expenses Advertising Expense Depreciation Expense Repairs & Maintenance Supplies Expense Uncollectible Accts Expense Utilities Expense Salary Expense Total Operating Expense Net Income in $ $ HAMPTON ACCOUNTING SE Statement of Retained Earnings For the Year Ending December 31, 2020 Retained Earnings, January 1 Add: Net Income $ Less: Dividends Retained Earnings, December 31 $ December 31,2020 Assets Current: $ Cash Accounts Receivable Less: Allowance for Unc. Accounts (enter here) [enter here] Total Current Assets $ Long-Term: $ (enter here) [enter here] [enter here) (enter here) (enter here] [enter here] Total Long-term Assets $ $ $ $ Total Assets Liabilities Current: Accounts Payable [enter here) (enter here) [enter here) Total Current Liabilities Stockholders Equity (enter here) Additional Paid in Capital Retained Earnings Total Liabilities & Stockholders Equity $ $ YES, Total Assets = Total Liabilities + Stockholders Equity