3 Transaction 4 Description of transaction 01. June 1: Byte of Accounting, Inc. acquired $42,000 in cash from Lauryn and issued 2,000 shares of its common stock. 5 6 02. June 1: Byte of Accounting, Inc. issued 2,540 shares of its common stock to Tamia Carnell after $22,050 in cash and computer equipment with a fair market value of $31,290 were received. 7 8 03. 9 June 1: Byte of Accounting, Inc. issued 2,022 shares of its common stock after acquiring from Courtney $30,450 in cash, computer equipment with a fair market value of $11,340 and office equipment with a fair value of $672. June 2? A down payment or $30,000 in cash was made on additional computer equipment that was purchased for $150,000. A five-year note was executed by Byte for 10 04. 11 the balance 12 05. June 4. Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation 13 14 06. June 8: Unsatisfactory office equipment costing $100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 15 16 07. June 10: Byte paid $23,000 on the balance it owed on the June 2 purchase of computer equipment 17 18 08. June 14. A one-year insurance policy covering its computer equipment was purchased by Byte for $4,968 in cash. The effective date of the policy was June 16. 19 20 21 09. June 16 A check in the amount of $8.250 was received for consulting revenue. Transactions General Journal Worksheet Income Statement Changes in Retained Tinano A 36 17. June 22: Received a bill for $1,090 from Computer Parts and Repair Co. for repairs to the computer equipment. 37 38 39 18. June 22: Paid the advertising bill that was received on June 17. 40 19. June 23: Purchased office supplies for $555 on credit. Record the purchase as an increase to the assets. 41 42 43 20. June 23: Cash in the amount of $3,845 was received on billings. 44 45 21. June 28: Billed $6,015 to miscellaneous customers for services performed to June 25. 46 47 22. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 48 23. June 29: Cash in the amount of $5,699 was received for billings. 49 50 24. June 29: Paid salaries of $910 to equipment operators for the week ending June 25. 51 52 53 25. June 30: Received a bill for the amount of $965 from O&G Oil and Gas Co. 54 26. June 30: Paid a cash dividend of $0.22 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.] 55 56 57 Adjusting Entries - Round to two decimal places. 58 27. The rent payment made on June 17 was for June July August and September. Expense the amount associated with one month's rent. 59 60 Transactions General Journal Worksheet Income Statement Changes in Adjusting Entries - Round to two decimal places. 8 27. The rent payment made on June 17 was for June, July, August and September. Expense the amount associated with one month's rent. 9 0 28. A physical inventory showed that only $225.00 worth of office supplies remained on hand as of June 30. 1 2 29. The annual interest rate on the mortgage payable was 8.25 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 3 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 Byte's 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 building's scrap value is $8,500. The office equipment has a scrap value of $300. 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 $546.00 are owed by Byte for three days, June 28 - 30. TEHTA Transactions General Journal Worksheet Income Statement Changes in 74 33. A review of the payroll records show that unpaid salaries in the amount of $546.00 are owed by Byte for three days, June 28 - 30. 75 76 34. 77 28 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 [IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $120,000. On June 10, eight days later, $23,000 was repaid. Interest expense calculated on the $120,000 for eight days. In addition, interest expense on the $97,000 balance of the loan ($120,000 less $23,000 = $97,000) must be calculated for the 20 days remaining in the month of June.] 9 0 1 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.] 2. 3 4 Closing Entries 5 3 36. Close the revenue accounts. 3 3 37. Close the expense accounts. 38. Close the income summary account. 39. Close the dividends account. Transactions General Journal Worksheet Income Statement File Home Insert Draw Page Layout Formulas Data Review View B141 fx F G 1 8 D E A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filed cells 2 3 Transaction Dato Name ACCount De bit 28 Description Dividends paid Jun 30 Credit 1110 Cash 4 132 133 134 135 136 137 138 139 140 141 142 143 27 27 Jun 30 Jun 30 5010 Rent Expense 1140 Prepaid Rent 1,800.00 Rent expense recognised Rent expense recognised 1.800.00 28 145 29 146 147 148 149 30 150 51 152 753 154 155 156 157 158 31 159 160 161 162 32 > General Journal Worksheet Income Statement Changes in Retained Earning Transa Date Account Name Description Debit Credit 4 60 61 62 32 33 64 65 66 67 68 69 70 171 34 173 174 35 76 177 179 36 180 181 182 183 184 185 186 187 188 189 1an 37 > General Journal Worksheet Income Statement Changes in Retained Earnings 3 Transaction 4 Description of transaction 01. June 1: Byte of Accounting, Inc. acquired $42,000 in cash from Lauryn and issued 2,000 shares of its common stock. 5 6 02. June 1: Byte of Accounting, Inc. issued 2,540 shares of its common stock to Tamia Carnell after $22,050 in cash and computer equipment with a fair market value of $31,290 were received. 7 8 03. 9 June 1: Byte of Accounting, Inc. issued 2,022 shares of its common stock after acquiring from Courtney $30,450 in cash, computer equipment with a fair market value of $11,340 and office equipment with a fair value of $672. June 2? A down payment or $30,000 in cash was made on additional computer equipment that was purchased for $150,000. A five-year note was executed by Byte for 10 04. 11 the balance 12 05. June 4. Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation 13 14 06. June 8: Unsatisfactory office equipment costing $100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 15 16 07. June 10: Byte paid $23,000 on the balance it owed on the June 2 purchase of computer equipment 17 18 08. June 14. A one-year insurance policy covering its computer equipment was purchased by Byte for $4,968 in cash. The effective date of the policy was June 16. 19 20 21 09. June 16 A check in the amount of $8.250 was received for consulting revenue. Transactions General Journal Worksheet Income Statement Changes in Retained Tinano A 36 17. June 22: Received a bill for $1,090 from Computer Parts and Repair Co. for repairs to the computer equipment. 37 38 39 18. June 22: Paid the advertising bill that was received on June 17. 40 19. June 23: Purchased office supplies for $555 on credit. Record the purchase as an increase to the assets. 41 42 43 20. June 23: Cash in the amount of $3,845 was received on billings. 44 45 21. June 28: Billed $6,015 to miscellaneous customers for services performed to June 25. 46 47 22. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 48 23. June 29: Cash in the amount of $5,699 was received for billings. 49 50 24. June 29: Paid salaries of $910 to equipment operators for the week ending June 25. 51 52 53 25. June 30: Received a bill for the amount of $965 from O&G Oil and Gas Co. 54 26. June 30: Paid a cash dividend of $0.22 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.] 55 56 57 Adjusting Entries - Round to two decimal places. 58 27. The rent payment made on June 17 was for June July August and September. Expense the amount associated with one month's rent. 59 60 Transactions General Journal Worksheet Income Statement Changes in Adjusting Entries - Round to two decimal places. 8 27. The rent payment made on June 17 was for June, July, August and September. Expense the amount associated with one month's rent. 9 0 28. A physical inventory showed that only $225.00 worth of office supplies remained on hand as of June 30. 1 2 29. The annual interest rate on the mortgage payable was 8.25 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 3 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 Byte's 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 building's scrap value is $8,500. The office equipment has a scrap value of $300. 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 $546.00 are owed by Byte for three days, June 28 - 30. TEHTA Transactions General Journal Worksheet Income Statement Changes in 74 33. A review of the payroll records show that unpaid salaries in the amount of $546.00 are owed by Byte for three days, June 28 - 30. 75 76 34. 77 28 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 [IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $120,000. On June 10, eight days later, $23,000 was repaid. Interest expense calculated on the $120,000 for eight days. In addition, interest expense on the $97,000 balance of the loan ($120,000 less $23,000 = $97,000) must be calculated for the 20 days remaining in the month of June.] 9 0 1 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.] 2. 3 4 Closing Entries 5 3 36. Close the revenue accounts. 3 3 37. Close the expense accounts. 38. Close the income summary account. 39. Close the dividends account. Transactions General Journal Worksheet Income Statement File Home Insert Draw Page Layout Formulas Data Review View B141 fx F G 1 8 D E A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filed cells 2 3 Transaction Dato Name ACCount De bit 28 Description Dividends paid Jun 30 Credit 1110 Cash 4 132 133 134 135 136 137 138 139 140 141 142 143 27 27 Jun 30 Jun 30 5010 Rent Expense 1140 Prepaid Rent 1,800.00 Rent expense recognised Rent expense recognised 1.800.00 28 145 29 146 147 148 149 30 150 51 152 753 154 155 156 157 158 31 159 160 161 162 32 > General Journal Worksheet Income Statement Changes in Retained Earning Transa Date Account Name Description Debit Credit 4 60 61 62 32 33 64 65 66 67 68 69 70 171 34 173 174 35 76 177 179 36 180 181 182 183 184 185 186 187 188 189 1an 37 > General Journal Worksheet Income Statement Changes in Retained Earnings