27.	The rent payment made on June 17 was for June and July. Expense the amount associated with one month's rent.
28.	A physical inventory showed that only $214.00 worth of office supplies remained on hand as of June 30.
29.	The annual interest rate on the mortgage payable was 8.75 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16.
30.	Information relating to the prepaid insurance may be obtained from the transaction recorded on June 14. Expense the amount associated with one half month's insurance.
31.	A review of Bytes job worksheets show that there are unbilled revenues in the amount of $5,750 for the period of June 28-30.
32.	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 buildings scrap value is $500. The office equipment has a scrap value of $500. The computer equipment has no scrap value. Calculate the depreciation for one month.
33.	A review of the payroll records show that unpaid salaries in the amount of $501 are owed by Byte for three days, June 28 - 30.
34.	The note payable relating to the June 2, and 10 transactions is a five-year note, with interest at the rate of 12 percent annually. Interest expense should be computed based on a 360 day year.
	[IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $116,000. On June 10, eight days later, $22,250 was repaid. Interest expense must be
	calculated on the $116,000 for eight days. In addition, interest expense on the $93,750 balance of the loan ($116,000 less $22,250 = $93,750) must be calculated for the 20 days remaining in the month of June.]
35.	Income taxes are to be computed at the rate of 25 percent of net income before taxes.
	[IMPORTANT NOTE: Since the income taxes are a percent of the net income you will want to prepare the Income Statements through the Net Income Before Tax line. The worksheet contains all of the accounts and their balances which you can then transfer to the appropriate financial statement.]
	Closing Entries
36.	Close the revenue accounts.
37.	Close the expense accounts.
38.	Close the income summary account.
39.	Close the dividends account.

27	Jun 30	5010	Rent Expense	Rent for one month expense.	2,100.00
27	Jun 30	1140	Prepaid Rent	Rent for one month expense.		2,100.00
28	Jun 30	5080	Supplies Expense	Supplies expense.	316.00
28	Jun 30	1150	Office Supplies	Supplies expense.		316.00
29	Jun 30	5090	Interest Expense	Interest Payable.	1,112.34
29	Jun 30	2103	Interest Payable	Interest Payable.		1,112.34
30	Jun 30	5100	Insurance Expense	Insurance expense.	270.00
30	Jun 30	1130	Prepaid Insurance	Insurance expense.		270.00
31	Jun 30	1120	Accounts Receivable		5,750.00
31	Jun 30	4100	Computer & Consulting Revenue	Need a Description		5,750.00
32	Jun 30	1412	Accum. Depr.-Building	Depre. Expense.	250.00
32	Jun 30	1312	Accum. Depr.-Computer Equip.	Depre. Expense.	2,416.67
32	Jun 30	1212	Accum. Depr.-Office Equip.	Depre. Expense.	5.95
32	Jun 30	5110	Depreciation Expense	Depre. Expense.		2,672.62
33	Jun 30	5020	Salary Expense	Unpaid salary.	501.00
33	Jun 30	2105	Salaries Payable	Unpaid salary.		501.00
34	Jun 30	2202	Notes Payable	Interest on notes.	934.33
34	Jun 30	5090	Interest Expense	Interest on notes.		934.33
35	Jun 30	3400	Income Summary	see
36	Jun 30	3200	Retained Earnings	Revenue account closed.
36	Jun 30	3400	Income Summary	Revenue account closed.
37	Jun 30	3400	Income Summary	Expenses Closed.	13,875.07
37	Jun 30	5020	Salary Expense	Expenses Closed.		2,171.00
37	Jun 30	5030	Advertising Expense	Expenses Closed.		325.00
37	Jun 30	5040	Repairs & Maint. Expense	Expenses Closed.		1,290.00
37	Jun 30	5010	Rent Expense	Expenses Closed.		4,200.00
37	Jun 30	5100	Insurance Expense	Expenses Closed.		90.00
37	Jun 30	5110	Depreciation Expense	Expenses Closed.		2,676.62
37	Jun 30	5090	Interest Expense	Expenses Closed.		41.20
37	Jun 30	5080	Supplies Expense	Expenses Closed.		214.00
37	Jun 30	5120	Income Tax Expense	Expenses Closed.		2,867.25
38	Jun 30	3400	Income Summary	Income summary.	424,421.00
38	Jun 30	3200	Retained Earnings	Income summary.		424,421.00
39	Jun 30	3200	Retained Earnings	Retained Earnings.	1,432.98
39	Jun 30	3300	Dividends	Retained Earnings.		1,432.98

Revenues
	Computer & Consulting Revenue
Expenses
	Rent Expense	4200
	Salary Expense	2171
	Advertising Expense	325
	Repairs & Maint. Expense	1290
	Oil & Gas Expense	865
	Supplies Expense	214
	Interest Expense	41.2
	Insurance Expense	90
	Depreciation Expense	2672
Total			433385.82
Net Income Before Tax
Income Tax Expense (Round to two decimal places)			13875.07
Net Income After Tax			13875.07

#32

# 35

June 16: Byte purchased a building and the land it is on for $113,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $18,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $11,300 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1.