hampton ACCOUNTING SERVICE INC Dear Newbie, Welcome to Hamptonl My name is Julio Antoni, your supervisor. We believe the best way for you to get working on the books for us right away you are going to be doing here is to throw you right in, so we are asking you to start For this project you will complete Hampton's entire accounting cycle. You will be required to recond 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 computerl) 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 51 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 5140,000 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 for the first haif of the month and on the 2 of the following month for the last hailf 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. hampton ACCOUNTING SERVICE INC Dear Newbie, Welcome to Hamptonl My name is Julio Antoni, your supervisor. We believe the best way for you to get working on the books for us right away you are going to be doing here is to throw you right in, so we are asking you to start For this project you will complete Hampton's entire accounting cycle. You will be required to recond 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 computerl) 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 51 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 5140,000 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 for the first haif of the month and on the 2 of the following month for the last hailf 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
