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Transaction Description of transaction June 1: Byte of Accounting, Inc. issued 2,630 shares of its common stock to Jeremy after $31,900 in cash and computer equipment with a fair market value of $44,370 were received. 01. 02. June 1: Byte of Accounting, Inc. issued 2,593 shares of its common stock after acquiring from Courtney 559,450 in cash, computer equipment with a fair market value of $15,080 and office equipment with a fair value of $667. 03. June 1: Byte of Accounting, Inc. acquired $104,400 in cash from Dylan Gabrielson and issued 3,600 shares of its common stock 04. June 2: A down payment of $33,000 in cash was made on additional computer equipment that was purchased for $165,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation 06. June 8: Unsatisfactory office equipment costing $100 was retumed to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07 June 10: Byte paid $25,250 on the balance it owed on the June 2 purchase of computer equipment. 08. June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $5,976 in cash. The effective date of the policy was June 16. 09 June 16: Computer consultation revenue of $8,250 was received. 10. June 16: Byte purchased a building and the land it is on for $101,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $16,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $10,100 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 2 3 11. June 17: Cash of $4,000 was paid for rent for June and July. Put the total amount into the Prepaid Rent account U 3 12. June 17: Received a bill of $400 from the local newspaper for advertising. 13 June 21: Billed various miscellaneous local customers 54,700 for consulting services performed. 3 9 14. June 21: A fax machine for the office was purchased for $725 cash. 15. June 21: Accounts payable in the amount of $400 were paid. 2 3 4 16. June 22: Paid the advertising bill that was received on June 17. 5 17. June 22: Received a bill for $1,240 from Computer Parts and Repair Co. for repairs to the computer equipment. 18. 8 9 June 22: Paid salaries of 885 to equipment operators for the week ending June 18. 19. 0 1 June 23: Cash in the amount of $3,765 was received on billings. 20. June 23: Purchased office supplies for 5605 on credit. Record the purchase as an increase to the assets. N 3 21. June 28: Billed $6,120 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,799 was received for billings. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 24. June 29: Paid salaries of $885 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $890 from O&G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.23 per share to the three shareholders of Byte. [IMPORTANT NOTE: The number of shares of capital stock outstanding can be determined from the first three transactions.) Adjusting Entries - Round to two decimal places. 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 $247.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 9.25 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. B A review of Byte's job worksheets show that there are unbilled revenues in the amount of $9,250 for the period of June 28-30. 31. 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 building's scrap value is $7,000. The office equipment has a scrap value of $350. 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 $531 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 $132,000. On June 10, eight days later, $25,250 was repaid. Interest expense must be calculated on the $132,000 for eight days. In addition, interest expense on the $106,750 balance of the loan ($132,000 less $25,250 - $106,750) 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. 82 83 84 85 86 87 88 89 90 91 37. Close the expense accounts. 38. Close the income summary account. 39. Close the dividends account. 92 B A D E A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. 3 Dato Debit 4 Transaction Account Name Description Credit 5 5 7 3 01 01 01 Jun 01 Jun 01 Jun 01 1110 Cash 1311 Computer Equip 3100 Capital Stock issued stock (2.630 shares) issued stock (2.630 shares) issued stock (2.630 shares) 31,900.00 44370.00 76,270.00 0 02 02 02 02 Jun 01 Jun 01 Jun 01 Jun 01 1110 Cash 1311 Computer Equip 1211 Office Equip 3100 Capital Stock 3 4 5 issued stock (2,593 shares) issued stock 2593 shares) issued stock (2,593 shares) issued stock/2.593 shares) 59,450.00 15.080.00 667.00 75,197.00 6 03 03 Jun 01 Jun 01 1110 Cash 3100 Capital Stock issued stock (3.600 shares) issued stock (3.600 shares) 104,400.00 104,400.00 8 9 165,000.00 2 04 04 04 Jun 02 Jun 02 Jun 02 1311 Computer Equip 2202 Notes Payable 1110 Cash computer equip expense computer equip expense computer equip expense 132,000.00 33 000 00 5 5 05 05 Jun 04 Jun 04 1211 Office Equip 2101 Accounts Payable office equip expense office equip expense 500 000 500.00 ho 06 Jun 08 Jun 08 2101 Accounts Payable 1211 Office Equip 06 returned office equip returned office equip 100 00 100 00 11 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Date Account Debit Hpelo Transaction Name Description 25,250.00 07 07 Jun 10 Jun 10 2202 Notes Payable 1110 Cash computer equip expense computer equip expense 25 250 00 5,976.00 08 08 Jun 14 Jun 14 1130 Prepaid Insurance 1110 Cash prepaid insurance prepaid insurance 5,976.00 8,250.00 09 09 Jun 16 Jun 16 1110 Cash revenue 4100 Computer & Consulting revenue 8.250.00 16.000.00 85,000.00 10 10 10 10 Jun 16 Jun 16 Jun 16 Jun 16 1510 Land 1411 Building Cost 1110 Cash 2201 Mortgage Payable purchase building & land purchase building & land purchase building & land Ipurchase building & land 10,100.00 90,900.00 4,000.00 11 11 Jun 17 Jun 17 1140 Prepaid Rent 1110 Cash Prepaid Rent Prepaid Rent 4,000.00 400.00 NINI Jun 17 Jun 17 5030 Advertising Expense advertising bill 2101 Accounts Payable advertising bill 400.00 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Debit Transaction Date Account Description Credit 13 13 Jun 21 Jun 21 Name 1120 Accounts Receivable revenue 4100 Computer & Consulting revenue 4.700.00 4.700.00 14 14 Jun 21 Jun 21 1211 Office Equip 1110 Cash 725.00 purchased office equip. purchased office equip 725.00 15 15 Jun 21 Jun 21 2101 Accounts Payable 1110 Cash 400.00 accounts payable accounts payable 400.00 16 16 Jun 22 Jun 22 2101 Accounts Payable 1110 Cash advertising expense advertising expense 400.00 400.00 17 17 Jun 22 Jun 22 5040 Repairs & Maint. Exper repair bill 2101 Accounts Payable repair bill 1,240.00 1.240,00 18 18 Jun 22 Jun 22 5020 Salary Expense 1110 Cash equip. operator salaries equip. operator salaries 885.00 885.00 A B E F G D A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Debit Credit Date Account 19 19 3,765.00 Name Description 1110 Cash cash received 1120 Accounts Receivable cash received Jun 23 Jun 23 3.765.00 605.00 20 20 Jun 23 Jun 23 1150 Office Supplies 2101 Accounts Payable purchased supplies on credit purchased supplies on credit 605.00 21 21 Jun 28 Jun 28 1120 Accounts Receivable revenue 4100 Computer & Consulting revenue 6,120.00 6,120.00 22 22 Jun 29 Jun 29 1110 cash 1120 Accounts Receivable cash received cash received 5.799.00 5.799.00 23 23 Jun 29 Jun 29 2101 Accounts Payable 1110 Cash paid repair bill paid repair bill 1 240.00 1,240.00 24 24 Jun 29 Jun 29 5020 Salary Expense 1110 Cash 885.00 equip. operator salaries equip operator salaries 885.00 B A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Account Debit Name Description Credit 5 890.00 25 25 Jun 30 Jun 30 5050 Oil & Gas Expense 2101 Accounts Payable gas bil gas bil 890.00 2,029.29 26 26 Jun 30 Jun 30 3300 Dividends 1110 Cash paid dividends paid dividends 2,029.29 2,000.00 27 27 Jun 30 Jun 30 5010 Rent Expense 1140 Prepaid Rent one month rent one month rent 2,000.00 247.00 28 28 Jun 30 Jun 30 5080 Supplies Expense 1150 Office Supplies supplies on hand supplies on hand 2 247.00 4 5 5 29 29 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable Need a Description A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Account Debit Name Description Credit 30 2 3 31 3 32 33 34 3 7 35 2 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. 3 Dato Account Transaction Name Description Debit Credit 36 37 4 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 38 39