The goal of this project is to review the accounting cycle, the accounting information system, and the use of worksheets in the preparation of financial statements.

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 to incorporate the adjusting entries into the ending trial balances (from the fourth tab) to create the adjusted trial balance.

In the seventh tab of the spreadsheet you should prepare Shipping Inc.'s Income Statement for the month ended January 31, 2021.

In the eighth tab of the spreadsheet you will need to prepare Shipping Inc.'s closing entry as of the end of January 2021. This should roll retained earnings forward.

In the ninth tab of the spreadsheet you need create the post-closing trial balance by updating the adjusted trial balance to incorporate the closing entry you prepared in the eighth tab.

Finally, in the tenth and eleventh tabs you should prepare Shipping Inc.'s Statement of Retained Earnings for the month ended January 31, 2021, and Balance Sheet as of January 31, 2021.

In the worksheet, you can only enter numbers in the tabs titled: "Journal Entries", "Adjusting Entries", and "Closing Entries". For the remaining tabs, you should use formulas available in Excel for all calculations.

The project is due at 11:00 PM on September 13th. You should submit the project by sending your completed spreadsheet to me via email.

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 delivery 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).

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 31^st. 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.