hampton ACCOUNTING SERVICE IN Dear Newbie, Welcome to Hamptonl My name is Julio Antoni your supervisor, We belleve the best way for asking you to start working on the books for us right away you to get familar with what you are going to be doing here is to throw you right in, so we are For this project you wall complete Hampton's entire accounting eycle. 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. Company Information Hampton Accounting Service Inc. is a publik corporation that has been in business for 1 year. The company is autherized to issue 100,000 shares of common stock at $1 par value. The company provides accounting services and sells accousting software To date the company has issued 20,000 shares of com on 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 buildieg was $140,000 and the cost of the furnishings was S30,000. The dep reciation 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 bullding. The estinated usefuf life of the furnishings is 5 years with a residual value of $2,500. The company uses the Double Declining dalance method to depreciate fureishings. The current inventory consists of 30 units of software at a cost of $140.00 each. inventory is cested using Liro and the perpetual inventory system. The company uses an allowance method to account for uncolectible accounts, it is estimated that 1% of net credit revenue w? b, uneolectble, adjusted monthly. Employees are paid S 2500 salary twice b month, 0 the 16-for the first half of the month and on the 2-of the following month for the last half of the month. Ignere income tax calculations Project Requirements 1. Opening balances- The epening balances for select accounts are provided in the apprepriate ledger accounts 2. Record the following tramactiens in the journal and pest to the ledger 12/02/13 Purchased 10 Units of Software on Account for $1,300 2/02/13- Paid employees Salaries owed 12/02/13-Provided Accounting Service on Account, $3.200 12/05/13- Purchased Computer Equigment on Accouat, $4,800 Note: The equipment has an estim ated useful ife of 4 years,residual value of $50 and wses the DDB method
