0 Project Requirements 1. Opening balances- The opening balances for select accounts are provided in the...
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0 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: D O 12/02/xx- Purchased 10 Units of Software on Account for $1,300 D 12/02/xx- Paid employees Salaries owed 0 12/02/xx- Provided Accounting Service on Account, $3,200 D 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. O 12/08/xx- Purchased Supplies for $800 cash O 12/10/xx- Received $3,000 payment on account 12/11/xx-Sold 15 units of Inventory on Account, $4,500 D D O O 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. D 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. O 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 O Note: This transaction requires two journal entries. The first entry should deal with the sale, and the second should deal with the inventory 0 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. O 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 HAMPTON ACCOUNTING SERVICE INC. Ledger NOTE: The table will be shaded blue when you have the correct balance. NOTE: Do not post adjusting entries here. You should post these directly on the "Trial Balance" sheet Open Bal Bal Open Bal Bal Bal Open Bal S Open Bal Bal Open Bal Bal 100 - Cash $ 111,583.00 $ 111,583.00 115 - Allowance for Uncollect Acct $ 1,070.00 0 130-Inventory 4,200.00 $ 4,200.00 151 - Accum Depre Building $ 1,070.00 156 - Accum Depre Fumishings $ Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal $ $ $ $ $ 110 Accounts Receivable $ 10,545.00 $ 10,545.00 120 - Supplies 2,000.00 $ 140,000.00 2,000.00 $ 140,000.00 150 - Building 155 - Fumishings 30,000.00 30,000.00 160 - Office Equipment 4,800.00 $ 4,800.00 pen Bal I en Bal I Den Bal I Den Bal I Den Bal I Den Bal $ I $ 161 - Accum Depre Office Equip $ 210- Uneamed Ser. Rev. $ 220- Dividends Payable 305- Additional Paid In Capital 7,589.00 $ 205,349.00 $ 205,349.00 400-Service Revenue $ 102,500.00 $ 102,500.00 500 - Advertising Expense 7,589.00 Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal $ 200-A/P $ $ $ 215 - Salary Payable 1,545.00 $ 1,545.00 300- Stock, Common $ 2,500.00 $ 20,000.00 2,500.00 $ 310- Retained Earings $ 20,000.00 40,000.00 40,000.00 410 Sales Revenue $ 16,500.00 16,500.00 510 - Depreciation Expense • Excel File Edit View Insert Format Tools Data Data Window Window Help ●●● AutoSave OFF ☎ SU ▼ Home Insert Draw Page Layout K131 25 330 331 232 3324 331 336 135 117 035 330 320 ALL 312 115 STA 317 328 329 3 120 321 322 Spr 128 134 Paste 125 125 127 3 120 129 300 341 142 144 154 135 135 237 130 327 340 381 187 145 344 347 342 344 141 147 155 154 Is X [B Ap ; L - PASAU 23 M 153 x ✓ fix € 1598340 165000 S 5 10000 S 1.000.00 BI -Cock 7.300.00 Chart of Accounts Page 1 of 2 Dal Cpm Cal Journal Formulas A A 2 G I Spart 525000€ 10-tal per 5 424710 55x42.00 aro-say SHIETIE 5 $5.000.00 - 12/31/xx-$500 of advance payment was earned in December Data Ledger 661 words Qx English (United States) NEW Review View TrialBalance BUS-A 201 Accounting Cycle Project 22 Wrap Text w Merge & Center v 0 Income Stmt ULOGG HO Stmt of RE % 9 Balance Shoot O ☺ gali ☎ 100% )) U.S. Fri Jul 19 12:07 PM Cameron QE Q- Search Sheet ☺ Conditional Format Cell Formatting as Table Styles UW Instructor Interface + Insert v Delete Format ✔ Focus E & M ↓ 28. Sort & ✓ Filter 2 Find & Select MC. Share Ideas Comments Sensitivity NI 0 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: D O 12/02/xx- Purchased 10 Units of Software on Account for $1,300 D 12/02/xx- Paid employees Salaries owed 0 12/02/xx- Provided Accounting Service on Account, $3,200 D 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. O 12/08/xx- Purchased Supplies for $800 cash O 12/10/xx- Received $3,000 payment on account 12/11/xx-Sold 15 units of Inventory on Account, $4,500 D D O O 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. D 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. O 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 O Note: This transaction requires two journal entries. The first entry should deal with the sale, and the second should deal with the inventory 0 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. O 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 HAMPTON ACCOUNTING SERVICE INC. Ledger NOTE: The table will be shaded blue when you have the correct balance. NOTE: Do not post adjusting entries here. You should post these directly on the "Trial Balance" sheet Open Bal Bal Open Bal Bal Bal Open Bal S Open Bal Bal Open Bal Bal 100 - Cash $ 111,583.00 $ 111,583.00 115 - Allowance for Uncollect Acct $ 1,070.00 0 130-Inventory 4,200.00 $ 4,200.00 151 - Accum Depre Building $ 1,070.00 156 - Accum Depre Fumishings $ Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal $ $ $ $ $ 110 Accounts Receivable $ 10,545.00 $ 10,545.00 120 - Supplies 2,000.00 $ 140,000.00 2,000.00 $ 140,000.00 150 - Building 155 - Fumishings 30,000.00 30,000.00 160 - Office Equipment 4,800.00 $ 4,800.00 pen Bal I en Bal I Den Bal I Den Bal I Den Bal I Den Bal $ I $ 161 - Accum Depre Office Equip $ 210- Uneamed Ser. Rev. $ 220- Dividends Payable 305- Additional Paid In Capital 7,589.00 $ 205,349.00 $ 205,349.00 400-Service Revenue $ 102,500.00 $ 102,500.00 500 - Advertising Expense 7,589.00 Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal Open Bal Bal $ 200-A/P $ $ $ 215 - Salary Payable 1,545.00 $ 1,545.00 300- Stock, Common $ 2,500.00 $ 20,000.00 2,500.00 $ 310- Retained Earings $ 20,000.00 40,000.00 40,000.00 410 Sales Revenue $ 16,500.00 16,500.00 510 - Depreciation Expense • Excel File Edit View Insert Format Tools Data Data Window Window Help ●●● AutoSave OFF ☎ SU ▼ Home Insert Draw Page Layout K131 25 330 331 232 3324 331 336 135 117 035 330 320 ALL 312 115 STA 317 328 329 3 120 321 322 Spr 128 134 Paste 125 125 127 3 120 129 300 341 142 144 154 135 135 237 130 327 340 381 187 145 344 347 342 344 141 147 155 154 Is X [B Ap ; L - PASAU 23 M 153 x ✓ fix € 1598340 165000 S 5 10000 S 1.000.00 BI -Cock 7.300.00 Chart of Accounts Page 1 of 2 Dal Cpm Cal Journal Formulas A A 2 G I Spart 525000€ 10-tal per 5 424710 55x42.00 aro-say SHIETIE 5 $5.000.00 - 12/31/xx-$500 of advance payment was earned in December Data Ledger 661 words Qx English (United States) NEW Review View TrialBalance BUS-A 201 Accounting Cycle Project 22 Wrap Text w Merge & Center v 0 Income Stmt ULOGG HO Stmt of RE % 9 Balance Shoot O ☺ gali ☎ 100% )) U.S. Fri Jul 19 12:07 PM Cameron QE Q- Search Sheet ☺ Conditional Format Cell Formatting as Table Styles UW Instructor Interface + Insert v Delete Format ✔ Focus E & M ↓ 28. Sort & ✓ Filter 2 Find & Select MC. Share Ideas Comments Sensitivity NI
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Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
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