01. 02. 03. 04. 05. 06. 90 June 1: Hudson Bloom invested $162,136.00 cash and computer equipment with a fair market value of $39,520.00 in his new business, Byte of Accounting. June 1: Check # 5000 was used to purchased computer equipment costing $15,600.00 from De'sa Bryant. The invoice number was 20117. June 1: Check # 5001 was used to purchased office equipment costing $676.00 from Office Express. The invoice number was 87417. June 2: Check # 5002 was used to make a down payment of $36,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $180,000.00. A five-year note was executed by Byte for the balance. June 4: Additional office equipment costing $400.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. June 8: Unsatisfactory office equipment costing $80.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. 08. 09. 10. 11. June 10: Check # 5003 was used to make a $27,500.00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer equipment for $6,312.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. June 16: A check in the amount of $6,500.00 was received for services performed for Pitman Pictures. June 16: Byte purchased a building and the land it is on for $107,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $17,000.00. The balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $10,700.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance. June 17: Check # 5006 for $4,800.00 was paid for rent of the office space for June, July and August. June 17: Received invoice number 26354 in the amount of $350.00 from the local newspaper for 12. 13. 14. 15. 16. 17. 18. June 17: Received invoice number 26354 in the amount of $350.00 from the local newspaper for advertising. June 21: Accounts payable in the amount of $320.00 were paid with Check # 5007. June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express for $850.00. The invoice number was 975-328. June 21: Billed various miscellaneous local customers $4,000.00 for consulting services performed. June 22: Check # 5009 was used to pay salaries of $960.00 to equipment operators for the week ending June 18. Ignore payroll taxes. June 22: Received a bill for $1,240.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254. June 22: Check # 5010 was used to pay the advertising bill that was received on June 17. 19. 20. 20 21. 22. 23. 23 24. 25. June 23: Purchased office supplies for $630.00 from Staples on account. The invoice number was 65498. June 23: Cash in the amount of $3,205.00 was received on billings. June 28: Billed $5,700.00 to miscellaneous customers for services performed to June 25. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011. June 29: Cash in the amount of $5,400.00 was received for billings. June 29: Check # 5012 was used to pay salaries of $960.00 to equipment operators for the weel- ending June 25. Ignore payroll taxes. June 30: Received a bill for the amount of $840.00 from O & G Oil and Gas Co. The invoice number was 784537. 26. 55 56 57 58 59 59 60 61 325 62 27. 28. 29. 63 64 65 30. 66 67 31. June 30: Check # 5013 was used to pay for airline tickets of $1,900.00 to send the kids to Grandma Ellen for the July 4th holiday. Adjusting Entries Round to two decimal places. The rent payment made on June 17 was for June, July and August. Expense the amount associated with one month's rent. A physical inventory showed that only $259.00 worth of office supplies remained on hand as of June 30. The annual interest rate on the mortgage payable was 8.50 percent. Interest expense for one- half month should be computed because the building and land were purchased and the liability incurred on June 16. Record a journal entry to reflect that one half month's insurance has expired. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $9,000.00 for the period of June 28-30. Contamont 44 54 32. 33. 34. The fixed assets have estimated useful lives as follows: Building 31.5 years Computer Equipment - 5.0 years Office Equipment -7.0 years Use the straight-line method of depreciation. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building's scrap value is $7,500.00. The office equipment has a scrap value of $450.00. The computer equipment has no scrap value. Calculate the depreciation for one month. A review of the payroll records show that unpaid salaries in the amount of $576.00 are owed by Byte for three days, June 28-30. Ignore payroll taxes. The note payable to Royce Computers (transactions 04 and 07) is a five-year note, with interest at the rate of 12 percent annually. Interest expense should be computed based on a 360 day vear [IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $144.000.00. On June 10, eight days later. $27.500.00 was repaid. Interest expense must be calculated on the $144,000.00 for eight days. In addition, interest expense on the $116,500.00 balance of the loan ($144,000.00 less $27,500.00 $116,500.00) must be calculated for the 20 days remaining in the month of June.] 8 0 1 A B 34. The note payable to Royce Computers (transactions 04 and 07) is a five-year note, with interest at the rate of 12 percent annually. Interest expense should be computed based on a 360 day vear. IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $144.000.00. On June 10, eight days later. $27.500.00 was repaid. Interest expense must be calculated on the $144,000.00 for eight days. In addition, interest expense on the $116,500.00 balance of the loan ($144,000.00 less $27,500.00 $116,500.00) must be calculated for the 20 days remaining in the month of June.] Closing Entries 3 35. Close the revenue accounts. 4 5 36.0. Close the expense accounts. 6 7 37. Close the income summary account. B 1 38. Close the withdrawals account. C 1 2 3 A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. 4 5 6 7 8 655 Transaction Date Account Name Description Debit Credit 01 Jun 01 1110 Cash cash 01 Jun 01 1311 Computer Equip cash 01 Jun 01 3100 Hudson Bloom, Capital 162,136.00 39,520.00 cash 9 201,656.00 10 11 12 88 02 Jun 01 02 Jun 01 1311 Computer Equip 1110 Cash computer Equip 15,600.00 computer Equip. 13 15,600.00 14 15 16 17 00 03 Jun 01 1211 Office Equip 03 Jun 01 1110 Cash office Equip office Equip 676.00 676.00 18 19 20 21 04 Jun 02 1311 Computer Equip. royce computers 180.000.00 Jun Jun Jun 02 Transaction 04 888 Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Name 02 02 1110 Cash 1311 Computer Equip Description Debit Credit royce computers 2202 Notes Payable royce computers royce computers. 180,000.00 36,000.00 144,000.00 05 Jun 04 05 Jun 04 1211 Office Equip 2101 Accounts Payable purchased on credit purchased on credit 400.00 400.00 06 Jun 08 2101 Accounts Payable 06 Jun 08 1211 Office Equip invoice number 98432 was returned invoice number 98432 was returned 80.00 80.00 07 Jun 10 2202 Notes Payable check #5003 royce computers 07 Jun 101 1110 Cash 27,500.00 Icheck #5003 rovce computers. 27 500 00 Martechiant! Income Statement . 51 07 Jun 10 7 07 Jun 10 Transaction Date: Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Debit Credit Name Description 2202 Notes Payable 1110 Cash check #5003 royce computers check #5003 royce computers 27.500.00 27,500.00 8 9 0 1 08 Jun 14 1130 Prepaid Insurance seth's insurance 6.312.00 6.312.00 2 08 Jun 14 1110 Cash seth's insurance 3 4 6,500.00 56789 09 Jun 16 1110 Cash pitman pictures 6.500.00 09 Jun 16 4100 Computer & Consulting pitman pictures 10 Jun 16 10 Jun 16 10 Jun 16 Transaction Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Name 1510 Land 1411 Building Description Debit Credit 1110 Cash 10 Jun 16 2201 Mortgage Payable 11 Jun 17 land and building purchased land and building purchased land and building purchased land and building purchased 107,000.00 17,000.00 11 Jun 17 1110 Cash 5030 Advertising Expense 10,700.00 113,300.00 building check #5006 building check #5006 4.800.00 4,800.00 12 Jun 17 5030 Advertising Expense invoice number 26354 350.00 12 Jun 17 2101 Accounts Payable invoice number 26354 350.00 1 2 3 4 65 66 13 Jun 21 67 13 Jun 21 68 Transaction Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Name 1120 Accounts Receivable. 4100 Computer & Consulting billed service performed Description billed service performed Debit Credit 320.00 320.00 69 76 77 78 79 80 REFFERRERAS 70 71 14 Jun 21 72 14 Jun 21 1211 Office Equip 1110 Cash 73 office machines express office machines express 850.00 850.00 74 75 15 Jun 21 15 Jun 21 1120 Accounts Receivable 4100 Computer & Consulting billed customers for services billed customers for services 4,000.00 4,000.00 16 Transaction Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Jun 21 Name 16 Jun 21 1110 Cash 5020 Salary Expense Description paid salaries paid salaries Debit Credit 960.00 960.00 77 17 Jun 21 17 Jun 21 5040 Repairs & Maint. Expen received bill for repairs 2101 Accounts Payable 1,240.00 received bill for repairs 1,240.00 18 Jun 21 2101 Accounts Payable paid advertising bill 18 Jun 21 1110 Cash paid advertising bill A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Jun Account 119 220 Name Description 21 1150 Office Supplies purchase of office supplies Jun 21 2101 Accounts Payable purchase of office supplies Debit 630.00 G Credit 630.00 Jun 21 1110 Cash Jun 21 1120 Accounts Receivable cash received on billings cash received on billings 3,205.00 3,205.00 22 21 Jun 21 1120 Accounts Receivable billed customers for services 5,700.00 21 Jun 21 4100 Computer & Consulting billed customers for services 5,700.00 H 22 22 Jun 21 22 Jun 21 Transaction Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Description Name 2101 Accounts Payable computer repair bill 1110 Cash computer repair bill Debit Credit 1.240.00 1,240.00 22 23 Jun 21 1110 Cash received cash from billings 5,400.00 23 Jun 21 1120 Accounts Receivable received cash from billings 5,400.00 22 24 Jun 21 5020 Salary Expense paid salaries 24 Jun 21 1110 Cash paid salaries 960.00 960.00 Transaction 25 Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Jun 21 25 Jun 21 5050 Oil & Gas Expense 2101 Accounts Payable Name received a bill Description received a bill Debit Credit 840.00 840.00 26 26 225 Jun 21 Jun 21 3300 Hudson Bloom, Withdra withdrawals for personal use 1110 Cash 1,900.00 withdrawals for personal use 1,900.00 27 227 27 Jun 30 5010 Rent Expense rent expense recognised 1,600.00 Jun 30 1140 Prepaid Rent rent expense recognised 1,600.00 12 3 4 141 142 223 28 Transaction Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Name Jun 30 28 Jun 30 5010 Rent Expense 1150 Office Supplies Description rent expense recognised rent expense recognised Debit Credit 371.00 371.00 143 144 145 146 147 29 22 29 Jun 30 5090 Interest Expense interest adjustment 341.06 Jun 30 2103 Interest Payable interest adjustment 341.06 148 149 150 151 30 152 153 154 4 123 Transaction Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Name Description Debit Credit 155 156 31 157 158 159 160 161 162 163 164 32 2222 32 Jun 30 5110 Depreciation Expense 32 Jun 30 32 Jun 30 Jun 30 1212 Accum. Depr-Office Eqidepreciation expense 1312 Accum Depr.-Computer depreciation expense 1412 Accum. Depr-Building depreciation expense 165 166 33 Jun 30 5020 Salary Expense salary expense 167 33 Jun 30 2105 Salaries Payable salary expense depreciation expense 4.131.18 14.24 3,901.33 215.61 606.00 606.00 168 169 170 171 34 Jun 30 5090 Interest Expense interest adjustment 1,160,67 1 2 3 4 171 34 Transaction Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Name: Jun 30 172 34 Jun 30 173 5090 Interest Expense 2103 Interest Payable Description Debit 174 interest adjustment interest adjustment Credit 1,160.67 175 1,160.67 176 35 Jun 30 177 35 Jun 30 178 3400 Income Summary 4100 Computer & Consulting closing revenue 179 closing revenue 25,700.00 25,700.00 36 Jun 30 36 Jun 30 Transaction Date Account A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. Name Description Debit Credit #36 Not in Balance by $3,170.00 3400 Income Summary closing revenue 16,192.18 5010 Rent Expense closing revenue 36 Jun 30 5020 Salary Expense closing revenue 1,600.00 2,626.00 36 Jun 30 5030 Advertising Expense closing revenue 400.00 36 Jun 30 5040 Repairs & Maint. Expen closing revenue 1,290.00 36 Jun 30 5050 Oil & Gas Expense closing revenue 36 Jun 30 5080 Supplies Expense closing revenue 36 Jun 30 5090 Interest Expense closing revenue 840.00 371.00 1,501.00 36 Jun 30 5110 Depreciation Expense closing revenue 263.00 36 Jun 30 1110 Cash closing revenue 4,131.18 37 Jun 30 3400 Income Summary closing income summary 9.507.82 37 Jun 30 3300 Hudson Bloom, Withdra closing income summary 9,507.82 23 A Byte of Accounting General Journal Note: You can only enter data into the yellow filled cells. 4 188 36 Transaction Date: Account Name Jun 30 189 5090 Interest Expense Description Debit Credit 36 Jun 30 closing revenue 190 36 Jun 30 5110 Depreciation Expense 1110 Cash closing revenue 191 closing revenue 1,501.00 263.00 4,131.18 192 37 Jun 30 3400 Income Summary 193 37 Jun 30 194 3300 Hudson Bloom, Withdra closing income summary closing income summary 9,507.82 9.507.82 195 196 197 38 198 199 200 201 202 3 For Period Ending June 30, 2023 4 5 6 Acc Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement 7 Number Name Debit Credit Debit Credi Deb Credit Debit Creat Balance Sheet Debit Creat 8 1110 Cash 69,743 00 0.00 0.00 0.00 69,743.00 69,743.00 9 1120 Accounts Receivable 1,415 00 0.00 0.00 0.00 141500 141500 69,743.00 1415 00 10 1130 Prepaid Insurance 6,312 00 0.00 0.00 0.00 6,31200 5,312.00 6.312.00 11 1140 Prepaid Rent 000 000 0.00 1,600.00 1.600.00 1,600.00 1,600 00 12 1150 Ofice Supplies 630.00 0.00 0.00 371.00 259 00 13 1211 Omce Equip 1,846.00 0.00 0.00 0.00 1,846 00 259.00 1,846.00 259 00 1,846 00 14 1212 Accum Depr-Office Equip 000 000 0.00 14 24 14.24 14.24 1424 15 1311 Computer Equip 235,120.00 0.00 000 0.00 235 120.00 235,120.00 235,120 00 15 1312 Accum Depr-Computer Equip 0.00 0.00 0.00 3.901.33 3.901.33 3,901 33 3.901.33 17 1411 Building Cost 17.000,00 000 0.00 000 17,000.00 18 1412 Accum Depr Building 0.00 0.00 000 215.61 215.61 19 1510 Land 107,000 00 0.00 0.00 000 107.000.00 17.000 00 21561 107,000.00 17,000.00 215.61 107.000.00 20 2101 Accounts Payable 0.00 2,140 00 0.00 0.00 2,140 00 2,140 00 2.140.00 21 2102 Advanced Payments 0.00 0.00 0.00 0.00 22 2103 Interest Payable 0.00 0.00 0.00 1,501.73 1,501 73 23 2105 Salanes Payable 000 0.00 0.00 606 00 606 00 25 2201 Mortgage Payable 0.00 113.300 00 0.001 0.00 113.300.00 26 2202 Notes Payable 0.00 116,500.00 0.00 0.00 116.500 00 27 3100 Hudson Bloom, Capital 0.00 201 656.00 0.00 0.00 201.656.00 1.501.73 606.00 113.300.00 116,500 00 201.656.00 1.501 73 600.00 113.300.00 116.50000 201,656,00 28 3300 Hudson Bloom, Withdrawals 1,900.00 0.00 0.00 0.00 1,900.00 1,900 00 1,900 00 29 30. 4100 Computer & Consulting Revenue 000 16.520.00 0.00 000 31 5010 Rent Expense 000 0.00 1,971.00 000 12 Accum Depr-Building 10 Land 0.00 0.00 0.00 215.61 107,000.00 0.00 0.00 215 61 0.00 107,000.00 215.61 107,000.00 01 Accounts Payable 0.00 2,140 00 0.00 0.00 2,140.00 215 61 107,000.00 2,140 00 02 Advanced Payments 103 Interest Payable 105 Salanes Payable 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,501 73 1,501 73 1,501.73 0.00 0.00 0.00 606.00 606 00 606.00 201 Mortgage Payable 62 0.00 113,300.00 0.00 0.00 113,300.00 113,300.00 202 Notes Payable 000 116,500.00 0.00 000 116,500.00 116,500.00 100 Hudson Bloom, Capital 0.00 201,656,00 0.00 0.00 201,656 00 201,656.00 300 Hudson Bloom, Withdrawals 1,900.00 0.00 0.00 0.00 1.900.00 1,900 00 1,900.00 100 Computer & Consulting Revenue 0.00 16,520.00 000 000 010 Rent Expense 0.00 0.00 1.971 00 0.00 020 Salary Expense 1,920 00 000 606.00 000 2.526.00 2.526 00 2.526 00 030 Advertising Expense 5,150.00 000 0.00 0.00 5,150 00 5,150 00 5.150 00 040 Repairs & Maint Expense 1,240 00 0.00 0.00 0.00 1.240.00 1,240.00 1,240 00 050 Oil & Gas Expense 840 00 0.00 0.00 0.00 840.00 840.00 840.00 080 Supplies Expense 0.00 0.00 000 0.00 090 Interest Expense 100 insurance Expense 110 Depreciation Expense Total NET INCOME 0.00 000 1,501.73 0.00 1,501.73 1,501.73 0.00 0.00 0.00 0.00 0.00 0.00 4.131.18 0.00 4.131.18 4,131.18 450,116.00 450,116,00 8.209.91 8.209.91 ######### 456,199 47 456,199 47 456,199 47 830 489.00 900,232.00 16,419 82 16.410 82 ## 456,199.47 456,199 47 456,199.47 1.501.73 4.131.18 456,199.47 456,199 47 2,140.00 1,501.73 606 00 113,300.00 115,500 00 201,656.00 456.199.47 456.199 47 A Byte of Accounting Income Statement For Month Ending June 30, 2023 Revenues Computer Revenue Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Oil & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Total Net Income $ A Byte of Accounting Statement of Owner's Equity For Month Ending June 30, 2023 Balance, Beginning of Period Investment Net Income Withdrawals Balance, End of Period Total A Byte of Accounting Balance Sheet As of June 30, 2023 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total Long-Term Assets Office Equip. Accum. Depr.-Office Equip. Computer Equip. Accum. Depr.-Computer Equip Building Cost Accum. Depr-Building 20 21 23 24 20 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Computer Equip. Accum. Depr.-Computer Equip. Building Cost Accum. Depr.-Building Land Total Total Assets Liabilities Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Total Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities Owner's Equity Hudson Bloom, Capital Total Liabilities and Owner's Equity