Please check and correct journal entries, T Account, and Adjusting Entries

In the project you will assume the role of the staff accountant for Shipping Inc., and perform Shipping Inc.'s accounting for the transactions that occurred during January 2021. A list of the transactions that Shipping Inc. engaged in during January 2021 is attached at the end of this assignment. As the staff accountant, you will need to: 1. Prepare journal entries for each of the attached transactions. 2. Post each of the journal entries to related T-accounts. 3. Prepare a trial balance at the end of the month. 4. Prepare any necessary adjusting entries. 5. Prepare an adjusted trial balance. 6. Prepare Shipping Inc.'s Income Statement for the month ended January 31, 2021. 7. Prepare Shipping Inc.'s January 31 closing entries. 8. Prepare Shipping Inc.'s January 31 post-closing trial balance. 9. Prepare Shipping Inc.'s Statement of Retained Earnings for the month ended January 31, 2021, and their Balance Sheet as of January 31, 2021. You should complete this project using the Excel spreadsheet Shipping Inc. Accounting Cycle Spreadsheet.xls posted to Canvas. The first tab of the spreadsheet provides Shipping Inc.'s trial balance as of the beginning of January 2021. The remaining tabs of the spreadsheet correspond to each of the 9 tasks above. In the "Journal Entries" tab you should prepare the appropriate journal entry for each of the transactions that Shipping Inc. engaged in during January 2021 (the journal entry for the first transaction has been completed as an example). On the third tab, T Accounts," you will post each of the entries to the related accounts (again the appropriate T-accounts have been adjusted for the first transaction). The fourth tab of the spreadsheet is the trial balance for January 31, 2021. You will need to transfer the amounts from the T-accounts to the new trial balance. On the fifth tab of the worksheet, you will need to create any appropriate adjusting entries for Shipping Inc. for January 2021. The sixth tab of the spreadsheet is the adjusted trial balance for January 31, 2021. You will need Shipping Inc.'s transactions during January 2021: 1. Jan. 1 - Issued 7,500 shares of no-par common stock for $14 per share. 2. Jan. 1 - Purchased a deliver van (used) for $16,000 in cash. Monthly depreciation for the van is $250. 3. Jan. 1 - Paid $3,840 for a one-year insurance policy covering the period January 1, 2021 - December 31, 2021. 4. Jan. 7 - Performed repairs and maintenance on their computer equipment costing $2,000. 5. Jan. 12 - Purchased inventory on credit for $92,000. 6. Jan. 15 - Declared and paid $4,000 in dividends to its shareholders. 7. Jan. 22 - Paid $65,000 to its suppliers for inventory purchased on credit in December 2020. 8. Jan. 25 - Provided services for which a customer had paid $3,000 in December of 2020 (hint: see the deferred revenue account in the January 1, 2021 trial balance). 9. Jan. 31 - Paid its employees $45,000 for work performed from December 26 - January 25. $6,800 was for work performed in December 2020, and 38,200 was for work performed from January 1 - January 25, 2021. 10. During January Shipping Inc. collected $118,300 in accounts receivable. (Make a summary entry for the entire month). 25. $6,800 was for work performed in December 2020, and 38,200 was for work performed from January 1 - January 25, 2021. 10. During January Shipping Inc. collected $118,300 in accounts receivable. (Make a summary entry for the entire month). 11. During January Shipping Inc. made credit sales for $210,000. The cost of the goods sold was $125,000. (Make summary entries for the entire month). Other information: 1. Monthly depreciation for the Furniture & Fixtures is $500, and monthly depreciation for the computer equipment is $350. 2. The note payable for $60,000 is a 5-year note that matures on December 31, 2023. The interest on the note is 8% and is payable annually on each December 31st Shipping Inc. made their regularly scheduled interest payment of $4,800 on December 31, 2020. 3. During the period January 26 - January 31 employees earned an additional $5,900 which will be included in their February paycheck. insert Format Tools Data window Help AutoSave OFF 121 Shipping Inc Accounting Cyc Home Insert Draw Page Layout Formulas Data Review View A X Times New Roman V 12 A Custom y Paste B V y a v $ % Some - B15 x fx 0 B c D A 1 Trial Balance Summary 2 As of January 1, 2021 3 4 5 Description 6 Cash 7 Accounts Receivable 8 Inventory 9 Furniture & Fixtures 10 Computer Equipment 11 Accum. Dep. - F&F 12 Accum. Dep. - Comp. Eqp 13 Accounts Payable 14 Salaries Payable 15 Notes Payable 16 Deferred Revenue 17 Common Stock 18 Retained Earnings 19 Total 20 21 22 23 24 25 26 27 28 29 30 Beginning Trial Balance Debit 107,800.00 114,300.00 89,500.00 26,000.00 16,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 353,600.00 Credit 0.00 0.00 0.00 0.00 0.00 1,200.00 6,000.00 78,400.00 6,800.00 60,000.00 5,000.00 60,000.00 136,200.00 353,600.00 Journal Entries T Accounts Ending Trial Balance Adjusting AutoSave OFF Shipping Inc Accounting Cycle Home Insert Draw Page Layout Formulas Data Review View Times New Roman V 12 ~ A A 22 General = = Paste BI UB IM IMI a. Ar $ % 9 300 ->0 E61 X A D E F G H 1 DR CR Cash 105,000 Common Stock 105,000 Delivery Van 16,000 Cash 16,000 Prepaid Insurance 3,840 Cash 3,840 Repair and Maintainence Expense Cash 2,000 2,000 15 Inventory 92,000 Accounts Payable 1 2 Entry 1 3 Description Issuance of Common Stock 4 Date 1-Jan 5 6 Purchase of van 7 1-Jan 8 9 Cash paid for insurance 10 1-Jan 11 12 Cash paif for maintenance 13 7-Jan 14 Purchase of inventory 16 12-Jan 17 18 Payment of dividends 19 15-Jan 20 21 Cash payment on account 22 22-Jan 23 24 Service revenue camned 25 25-Jan 26 27 Payment of Salaries 28 31-Jan 29 30 Beginning Trial Balance Ready 92,000 Dividends 4,000 Cash 4,000 Accounts Payable 65,000 Cash 65,000 Deferred Revenue 3,000 Service Revenue 3,000 Salaries Payable Salaries Expense 6,800 38,200 Cash 45,000 Journal Entries T Accounts Ending Trial Balance Adjusting Entri AutoSave OFF Shipping Inc Accounting Cycle Home Insert Draw Page Layout Formulas Data Review View cor 12 VA A General Times New Roman BIU 111 lil 1.1 || v Paste a A v $ %) 0 00 50 E61 fx B D E G H F JE - Cash 45,000 Collection on Account 31-Jan Cash 118,300 Accounts Receivable 118,300 Accounts Receivable Sales on Account 31-Jan 210,000 Sales 210,000 COGS Recorded 31-Jan Cost of Goods Sold 125,000 Inventory 125,000 850 Depreciation Expense 31-Jan A CO 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 5 CO Depreciation Expense Accumulated Depreciation-F&F Accumulated Depreciation-Computer 500 350 Accrual of Interest Expense 31-Jan Interest Expense 400 Interest Payable 400 Accrual of Salaries Expense 31-Jan Salary and Wages Expense 5,900 Salaries Payable 5,900 Depreciation Expense 31-Jan Depreciation Expense 250 Accumulated Depreciation-Van 250 Insurance Expired 31-Jan Insurance Expense 320 Propnid Insurance 320 Beginning Trial Balance Journal Entries T Accounts Ending Trial Balance Adjusting Enti Ready Data Window Help Eel File Edit View Insert Format Tools OFF @ Su = AutoSave Shipping Inc Accounting Cycle Home Insert Draw Page Layout Formulas Data Review View or Calibri (Body) v 11 A A Number V Paste BIU v a. A $ % 9 v C3 fx = Journal Entries' H3 A B C D E F G BB 1 2 3 4 5 Cash 107,800 105,000 118,300 . Common Stock 60000 88 105,000 6 7 8 16,000 3,840 2,000 4,000 65,000 45,000 165,000 195,260 Prepaid insurance 0 3,840 320 BB 3,520 9 10 11 12 13 14 15 16 17 18 19 20 Van 0 16,000 16,000 BB Maintenance Expense 0 2,000 2,000 Accounts Payable 78400 BB 65,000 92,000 Retained Earnings 136200 4,000 105,400 22 23 24 25 26 27 28 29 30 31 32 BB Inventory 89500 92,000 132,200 125,000 Deferred Revenue 5000 BB 3,000 56,500 Beginning Trial Balance Journal Entries T Accounts Ending Trial Balance Adjusting Entrie Ready AutoSave OFF su Page Layout Formulas Shipping Inc Accounting Home Insert Draw Data Review View Calibri (Body) 11 ' ' Number : ] 10 lill M TIM V Paste BIU a.A $ % 00 C3 fx ='Journal Entries' H3 A B D Van E F G H 3,52U BB 0 16,000 16,000 BB Maintenance Expense 0 2,000 2,000 Accounts Payable 78400 BB 65,000 92,000 Retained Earnings 136200 4,000 105,400 BB 132,200 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Inventory 89500 92,000 125,000 Deferred Revenue 5000 3,000 56,500 2,000 BB Salary and Wage Expense 0 38,200 5,900 Service Revenue OB 3,000 44,100 BB 3,000 Accounts Receivable 114300 210,000 118,300 Sales Revenue 08 Beginning Trial Balance Journal Entries T Accounts Ending Trial Balance Adjusting Ready AutoSave OFF BU Insert Draw Page Layout Formulas Shipping Inc Accounting Cycle Spread Home Data Review View 11 ' Number Cond IG v Calibri (Body) BIU 0 V Paste V a. A $ % ) % Forn Cell 100 C3 x fx ='Journal Entries' H3 B C D E F H 1 2,000 BB Salary and Wage Expense 0 38,200 5,900 33 34 35 36 37 38 39 40 41 42 43 44 Service Revenue 0 BB 3,000 44,100 3,000 BB Accounts Receivable 114300 210,000 118,300 45 Sales Revenue O BB 210,000 206,000 210,000 Furniture & Fixtures 26000 BB BB JE 11 COGS 0 0 125,000 26000 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 125,000 Acc Dep. Furniture & Fix 1200 BB 500 BB Computer Equipment 16000 1,700 16000 Salaries Payable 6800 BB Beginning Trial Balance Journal Entries T Accounts Acc. Dep. Computer Equip Ending Trial Balance Adjusting Entries Ready 15 Shipping Inc Accounting Cyc AutoSave OFF A 95 - Insert Draw Page Layout Formulas Home Data Review View abe 11 & A A Number v Calibri (Body) BIU V Paste Av IH 10 V $ % C3 fx ='Journal Entries' H3 B C D E F G H COS ZUUU 0 BB JE 11 125,000 26000 125,000 Acc Dep. Furniture & Fix 1200 BB 500 BB Computer Equipment 16000 1,700 16000 SU 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 Salaries Payable 6800 BB 6,800 5,900 Acc. Dep. Computer Equip 6000 BB 350 5,900 6,350 Notes Payable 60000 30 60000 Beginning Trial Balance Journal Entries T Accounts Ending Trial Balance Adjusting E Ready 15 A ... AutoSave OFF Shipping Inc Account Home Insert Draw Page Layout Formulas Data Review View or Times New Roman 12 V A A General Paste a. A V $ % ) CO od X B Credit Debit 195,260.00 206,000.00 56,500.00 3,520.00 26,000.00 16,000.00 16,000.00 A16 fx Salaries Payable A CYNT 2 As of January 31, 2021 3 4 5 Description 6 Cash 7 Accounts Receivable 8 Inventory 9 Prepaid Insurance 10 Furniture & Fixtures 11 Computer Equipment 12 Van/Vehicles 13 Accum. Dep. - F&F 14 Accum. Dep. - Comp. Eqp 15 Accounts Payable 16 Salaries Payable 17 Deferred Revenue 18 Notes Payable 19 Common Stock 20 Retained Earnings 21 Service Revenue 22 Sales Revenue 23 COGS 24 Maintenance Expense 25 Salary and Wage Expense 26 Total 27 28 29 30 21 Beginning Trial Balance Journal Entries 1,700.00 6,350.00 105,400.00 5,900.00 2,000.00 60,000.00 165,000.00 132,200.00 3,000.00 210,000.00 125,000.00 2,000.00 5,900.00 652,180.00 691,550.00 TAccounts Ending Trial Balance Adju Ready