Please assist me with Trial Balance, Income Statement, Balance Sheet, and Statement of Retained Earnings on the attached form. I am attaching form and excel spreadsheet. Thanks!
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 ofthe 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 ofthe month and on the 2\":1 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 MSalaries 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 of4 years, residual value of $50 and uses the 003 method. 1210811ot- Purchased Supplies for $800 cash 12/10fxx- Received $3,000 payment on acoount 12/11fxx- 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 12111,?10t- Made payment on Account, $1,000 12l12hot- Purchased 20 units of Inventory on Account, $2,400 12/14j'xx- Received a bill for Advertising and paid it, $250 12(15JJot- Provided Accounting service for Cash, $8,000 12/16fxx- Paid employees saiary for Dec. 1-15 12/1'i'hot- Provided Accounting Service on Account, $6,000 12l191xx- Sold 10 units of Inventory on Acoount, $3,000 Note: This transaction requires two journal entries. The rst entry should deal with the sale, and the second should deal with the inventory 12f22[xx- Received $2,500 payment on Account 12xzsm- Made payment on Account, $2,500 12/24,!xx- Received and paid monthly Utility bills, 5350 12/221! Received $2,000 cash in advance for accounting services 12f29hot Provided Accounting Service for Cash, $5,000 12I30hot- Issued 1,000 shares of Common Stock at $15 per share 12/31hot Declared dividends of 51.50 to outstanding shareholders as of 12i'31lxx. 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. 00 NOT post the adjusting entries to the ledger. Instead, post them direme as adjustments to the trial balance. mam- Employees salary for Dec. 16-31 12131hot- Depreciation on Building, use SL method (calculate for entire year] 12!31,fxx Depreciation on Furnishings, use 003 method {calculate for entire yea r} 12(31fxx- Depreciation on Computer Equipment, use 000 method [calculate for one month} 12f31fxx- Supplies on hand equal $1,625 1331!)\"- lnventory count shows 33 units, some damaged units were disposed of during the month 12mm- 5500 of advance payment was earned in December 12131fxx- 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 nancial statements for the year ending December 31, 2010
