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Company Information

Indiana Accounting Service Inc. is a public corporation that has been in business for 1 year. The IPO for the company authorized 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 of the building was $150,000 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 and uses the Straight line method. The estimated useful life of the furnishings is 5 years with a residual value of $2,500 and uses the DDB method. The current inventory consists of 30 units of software at a cost of $140.00 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 credit revenue will be uncollectible, adjusted monthly. Employees are paid $2,500 salary twice a month, on the 16^th for the first half of the month and on the 2^nd of the following month for the last half of the month. Use the Calculations worksheet for calculations of Inventory record, Depreciation, and Uncollectible Accounts Expense. Ignore income tax calculations.

Project Requirements

1. Opening balances- The opening balances for select accounts are provided in the appropriate ledger accounts. All required ledger accounts are provided.

2. Record the following transactions in the journal. The journal is provided. Record explanation on the last line for each journal entry:

12/02/14- Purchased 10 Units of Software on Account for $1,300

12/02/14- Paid employees Salaries owed from November 16^th-30^th

12/02/14- Provided Accounting Service on Account, $3,200

12/05/14- Purchased Computer Equipment on Account, $4,800

12/08/14- Purchased Supplies for $950 cash

12/10/14- Received $3,000 payment on account

12/11/14- Sold 15 units of Inventory on Account, $4,500

12/11/14- Made payment on Account, $1,200

12/12/14- Purchased 20 units of Inventory on Account, $2,400

12/14/14- Paid for Advertising, $375

12/15/14- Provided Accounting service for Cash, $8,000

12/16/14- Paid employees salary for December 1^st -15^th

12/17/14- Provided Accounting Service on Account, $6,000

12/19/14- Sold 10 units of Inventory on Account, $3,000

12/22/14- Received $2,500 payment on Account

12/23/14- Made payment on Account, $2,800

12/24/14- Paid monthly Utility bills, $850

12/27/14- Received $2,000 cash in advance for Accounting service

12/29/43- Provided Accounting Service for Cash, $5,000

12/30/14- Issued 1,000 shares of Common Stock at $15 per share

12/31/14- Declared and paid dividends of $1.50 to outstanding shareholders as of 12/31/14.

3. Post to the ledger for each of the recorded journal entries. Reference each entry from the journal. Create formula for each ledger to calculate the appropriate balance.

4. Prepare a trial balance, using the worksheet, to verify that total debits equal total credits. Reference account balances from the ledger. Create formula to calculate all balances in the worksheet (requirement 4, 5, and 6).

5. Record the necessary adjustments in the worksheet, journal and post to the ledger for the following items:

12/31/14- Accrued employees salary for December 16^th -31^st

12/31/14- Depreciation on Building, use SL method (calculate for entire year)

12/31/14- Depreciation on Furnishings, use DDB method (calculate for entire year)

12/31/14- Depreciation on Computer Equipment, use DDB method (calculate for one month)

12/31/14- Supplies on hand equal $1,625

12/31/14- Inventory count shows 33 units, some damaged units were disposed of during the month

12/31/14- $500 of advance payment was earned in December

12/31/14- Uncollectible Account expense for December

6. Prepare an Adjusted trial balance, using the worksheet, to verify debits equal credits.

7. Prepare the 3 main Financial statements for the year ending December 31, 2014. For the income statement, use a Multi- step format. For the balance sheet, prepare a classified balance sheet. Use a separate Excel worksheet for each statement. Use proper headings and format for each statement. Reference from the adjusted trial balance on the worksheet. Use Excel formulas for all calculations. See textbook for examples.

8. Record the required Closing entries in the journal and post to the ledger.

------------------------------------------------------------------------------------------------------------Above it the full questions.

I've worked on some, and I am copying them down below:

1. Journal

Date	Accounts and Explanation	Debit	Credit
12/2/14	Inventory	1300
	Accounts Payable		1300
	Purchased inventories on account
12/2/14	Salary Payable	2500
	Cash		2500
	To pay salary owed from November
12/2/14	Accounts Receivable	3200
	Service Revenue		3200
	Performed service on account
12/5/14	Equiptment	4800
	Accounts Payable		4800
	Purchased equiptment on account
12/8/14	Supplies	950
	Cash		950
	Paid cash for supplies
12/10/14	Cash	3000
	Accounts Receivable		3000
	Received on account
12/11/14	Accounts Receivable	4500
	Sales Revenue		4500
	Sold inventory on account
12/11/14	Cost of inventories sold	2100
	Inventory		2100
	Recorded cost of inventories sold
12/11/14	Accounts Payable	1200
	Cash		1200
	Paid on account
12/12/14	Inventory	2400
	Accounts Payable		2400
	Purchased Inventory on account
12/14/14	Advertising Expense	375
	Cash		375
	Paid cash for advertising
12/15/14	Cash	8000
	Service Revenue		8000
	Performed service for cash
12/16/14	Salary Payable	2500
	Cash		2500
	To pay salary owed for December
12/17/14	Accounts Receivable	6000
	Service Revenue		6000
	Performed service on account
12/19/14	Accounts Receivable	3000
	Sales Revenue		3000
	Sold inventory on account
12/19/14	Cost of inventories sold	1400
	Inventory		1400
	Recorded cost of inventories sold
12/22/14	Cash	2500
	Accounts Receivable		2500
	Received on account
12/23/14	Accounts Payable	2800
	Cash		2800
	Paid on account
12/24/14	Utilities Expense	850
	Cash		850
	Paid utilities bill with cash
12/27/14	Cash	2000
	Service Revenue		2000
	Performed service for cash
12/29/14	Cash	5000
	Service Revenue		5000
	Performed service for cash
12/30/14	Cash	15000
	Common Stock		15000
	Issued Common Stock
12/31/14	Dividends	30000
	Cash		30000
	Declared and paid dividends
12/31/14	Salary Expense	2500
Adj	Salary Payable		2500
	To accrue salary expense
12/31/14	Depreciation Expense-Building	7500
Adj	Accumulated Depreciation- Building		7500
	To record depreciation
12/31/14	Depreciation Expense-Furniture	12000
Adj	Accumulated Depreciation- Furniture		12000
	To record depreciation
12/31/14	Depreciation Expense- Equiptment	200
Adj	Accumulated Depreciation- Equiptment		200
	To record depreciation
12/31/14	Supplies Expense	1625
Adj	Supplies		1625
	To record supplies expense
12/31/14	Cost of inventories sold	280
Adj	Inventory		280
	Recorded cost of inventories sold
12/31/14	Unearned Revenue	500
Adj	Revenue		500
	Record revenue and decrease unearned revenue
12/31/14	Uncollectible Account Expense	167
Adj	Allowance for Uncollectible Accounts		167
	Recorded uncolletible account expense for December
	Service Revenue
Clo	Retained Earnings
	Retained Earnings
Clo	Salary Expense
	Supplies Expense
	Depreciation Expense
	Utilities Expense
	Retained Earnings
Clo	Dividends

2. Ledger

I still have to complete worksheet below - and I am struggling with the unbalance of debits and credits.

	Trial Balance		Adjustments		Adj. Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	79,941				79,941
Accounts Receivable	26,200				26,200
Allowance for Unc. Accounts		900		167		1,067
Supplies	3,950			1,625	2,325
Inventory	4,700			280	4,420
Building	150,000				150,000
Accumulated Depreciation- Building				7,500		7,500
Furnishing	30,000				30,000
Accumulated Depreciation- Furnishings				12,000		12,000
Office Equipment	4,800				4,800
Accumulated Depreciation- Off. Equip.				200		200
Accounts Payable		5,700			5,700
Salary Payable		-		2,500		2,500
Unearned Service Revenue		2,000		500		2,500
Stock, Common		19,000				19,000
Additonal Paid in Capital		166,000				166,000
Retained Earnings		40,000				40,000
Dividends	31,500				31,500
Service Revenue		142,700				142,700
Sales Revenue		23,000				23,000
Advertising Expense	8,174				8,174
Depreciation Expense	-		19,700		19,700
Repairs & Maintenance Expense	10,675				10,675
Supplies Expense	3,560				3,560
Uncollectible Accounts Expense	900		167		1,067
Utilities Expense	6,500				6,500
Cost of Goods Sold		10,900	280			10,900
Salary Expense	57,500		2,500		60,000
Total	$418,400	$410,200	$22,647	$24,772	$444,562	$427,367

Please help me out to find my errors and complete this worksheet correctly, and also to complete income statement, statement of retained earning, and finally balance sheet.

Thank you for your help!

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