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 16th for the first half of the month and on the 2nd 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.

NOTE: I REALLY NEED HELP WITH THE LEDGER!!!!! My cash is not coming out right!!!!

hampton ACCOUNTING SERVICE INC 12/0/xPurchased Supplies for $800 cash 12/10ox Received 53,000 payment on account 12/11x Sold 15 units of Iventory on Account, 54,50o Note: This transaction requires two journal entries. The first entry should deal with the ale, and the second should deal with the inventory Welcome to Hamptonl My name is Julio Antoni, your supervisor. We believe the best way for you to get amiliar with what you are going to be doing here is to theow you right in, so we are asking you to start working on the books for us right away. For this project you will complete Hampton's entie accounting cyole. You will be required to record entries injournal, post to ledger, complete a-balance, and prepare social state nere Tranmactions will include day to day operations, adjusting entries, dividends and clesing entries All the work will be completed in the provided Excel workbook Imake sure you save the fite on to your computerl 2/31Made payment on Account, $1,000 12/12/ Purchased 20 units of Inventory on Account, $2,4c0 12/34/cs-Received a bill for Advertising and paid it, $250 12/15/ Provided Accounting service for Cash, $8,000 12/16x Paid employees salary for Dec. 1-15 2/37/x- Provided Accounting Service on Account, $6,000 2/1Vx-Sold 10 units of Inventory on Account, $1,000 Note: This transaction nequires two journal entries. The first entry should deal with the Company Information 2/22x-Received 52,500 payment on Account 12/2xx Made payment on Account, $2.500 3/24x-Received and paid monthly Utility bils, $850 2/27/x- Recelved $2.000 cash in advance for accounting services 2/29x-Provided Accounting Service for Cash, $5,000 2/30x-sued 1,000 shares of Common Stock at 5i5 per share 12/31/x Declared dividends of $1.50 to outstanding shareholders as of 12/31 The company is authorized to issue 100,000 shares of common stock at 51 par value. The company provides accoueting services and seils accounting seftware To date the company has issued 20,000 shares of common stock, which are still ouestanding The isued shares were sold at 530 per share. A building and furnishings were purchased at the start of the year The cont of the building was 5140,000 and the cost of the furnishings was $30,000. The depreciation wi be recorded annually. The estimated usefal ife of the building is 20 years with a residual value of 10.000. The company uses the Straight ine method to deprecate the buiding. The estinated uneful lfe of the furnishings is 5 years with a residual value of $2,500. The company uses the Double Declining Balance method to depreciate tunishings. The curent inventory consists of 30 units of software at a cost of $140 0 each. Inventory is oosted ung uro and the perpetaal ivemory wstem The company Note: Be sure to debit retained earnings and credit dividends payable. 3. Prepare a trial balance to verify thait total debits equal total credits Record the following adjustments in the journal and in the brial balance. DO NOT post the djunting entries to the ledger Instead, post them directly as adjustments to the brial balance 12/3 x-Employees salary for Dec 16-13 12/3x-Depreciation on Building use St method (kalculate for entire year) /Depreciation on Furnishings, use 008 method (calculate for entire year) 12a Depreciation on Computer Equigment, use D08 methed (calculace for one menth) 23/-Supplies on hand equal $1,625 12a-Inventory count shows 13 unts, some damaged units were dispoted of during the lowance method to account for uncolectible accounts " is estiuted that 1% of net cred revenue wil be uncollectble, adjusted monthly. trperees a" paid S2.500 ulary twice more, on the 16h for the fierst haif of ehe month and on the 2 of the follewing month for the last haif of the month. Ignare income las cakoulanons Project Requirements 00ering balances-The epeting balances for select account." provded in the acro rwe ledger account 3500 of advance payment was earned in Decenber 2/3Uncollect ble Account expense fer Decem ber S Prepare an Adjusted trial balance to verily debits equal credits at the end of the month 2. Record the following transactions in the journal and post to the ledger Prepare the I main inancial statements for the year ending December 31, 20%s 12/02/K8-Purchaned 10 Units of Software on Account for $1.300 12/02/%a-P owed 12/0/x Provided Accounting Service on Account, $3,200 12/05/a-Purchaned Computer Equipment on Account. 54,800 Paid employees Salaries Note: The equipment has an estinated useful life of 4 years, revidual value of $90 and