Company InformationHampton Accounting Service Inc. is a public corporation that has been in business for 1 year. The company provides accounting services and sells accounting software. Hampton Accounting Service Inc. is authorized to issue 100,000 shares of $1 par value common stock. The current inventory consists of 30 units of software at a cost of $40.00 each. Inventory is cost 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 sales on account will be uncollectible. Employees are paid $1,500 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.Project RequirementsOpening balances- The opening balances for select accounts are provided in the appropriate ledger accounts.Record the following transactions in the journal and post to the ledger:01/01/15- Issued 1,000 shares of common stock for $5,00001/02/15- Paid for 3 months of Building Rent, $3,00001/02/15- Paid employees Salaries owed01/02/15- Provided Accounting Service on Account, $4,50001/05/15- Purchased Computer Equipment on Account, $6,800 Note: The equipment has an estimated useful life of 4 years and residual value of $50.01/08/15- Purchased Supplies for $800 cash01/10/15- Received $300 payment on account01/11/15- Sold 15 units of Inventory on Account, $1,50001/11/15- Made payment on Account, $1,00001/12/15- Purchased 20 units of Inventory on Account, $90001/14/15- Paid for Advertising, $45001/15/15- Provided Accounting service for Cash, $2,50001/16/15- Paid employees salary for Jan 1-1501/17/15- Received $1,400 payment on Account01/19/15- Sold 10 units of Inventory on Account, $1,00001/22/15- Received $1,500 payment on Account01/23/15- Made payment on Account, $2,50001/25/15- Paid monthly Utility bills, $85001/27/15- Received $2,000 cash in advance for Accounting service01/29/15- Paid for Advertising, $35001/31/15- Declared and paid $2/share cash dividend
Prepare a trial balance to verify that total debits equal total credits. Use Excel formulas to calculate balances.Record the necessary adjustments in the worksheet, journal and ledger for the following items:01/31/15- Employees salary for Jan 16-31.01/31/15- Depreciation on Computer Equipment, use DDB method (calculate for 1 month)01/31/15- January’s Rent01/31/15- Supplies on hand equal $62501/31/15- Inventory count shows 23 units, some damaged units were disposed of during the month01/31/15- $500 of advance payment was earned in January01/31/15- Uncollectible Account expensePrepare an Adjusted trial balance to verify debits equal credits at the end of the monthPrepare the 3 main Financial statements for the month of January. For the income statement, use a Multi- step format. For the balance sheet, prepare a classified balance sheet. Enter Excel formulas for all calculations. The format of all 3 statements should be neat and consistent.Extra Credit (10 points)Use Cell referencing between the worksheets
Notes:The ledger balances will automatically calculate with the formulas that are present. If your trial balance is not in balance, you must go back and check your postings to the ledger and
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