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 Below is the information for 32 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 Account Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Number Name Debit Credit Debit Credit Debit Credit 1110 Cash 87,962 02 87,962 02 1120 Accounts Receivable 1,135 00 5,750 00 6,885 00 1130 Prepaid Insurance 6,480 00 270 00 6,210 00 1140 Prepaid Rent 4,200 00 2,100 00 2,100 00 1150 Office Supplies 530 00 316 00 214 00 1211 Office Equip 2,011 00 2,011 00 1212 Accum Depr Office Equip 25 90 25 90 1311 Computer Equip 203,520 00 203,520 00 1312 Accum Depr Computer Equip 2,416 67 2,416 67 1411 Building Cost 95,000 00 95,000 00 1412 Accum Depr Building 250 00 250 00 1510 Land 18,000 00 18,000 00 2101 Accounts Payable 1,395 00 1,395 00 2102 Advanced Payments 2103 Interest Payable 1,305 11 1,305 11 2105 Salaries Payable 501 00 501 00 2106 Income Taxes Payable 2201 Mortgage Payable 101,700 00 101,700 00 2202 Notes Payable 93,750 00 93,750 00 3100 Capital Stock 211,176 00 211,176 00 3200 Retained Earnings 3300 Dividends 1,432 98 1,432 98 4100 Computer Consulting Revenue 16,400 00 5,750 00 22,150 00 5010 Rent Expense 2,100 00 2,100 00 5020 Salary Expense 1,670 00 501 00 2,171 00 5030 Advertising Expense 325 00 325 00 5040 Repairs Maint Expense 1,290 00 1,290 00 5050 Oil Gas Expense 865 00 865 00 5080 Supplies Expense 316 00 316 00 5090 Interest Expense 1,305 11 1,305 11 5100 Insurance Expense 270 00 270 00 5110 Depreciation Expense 2,692 57 2,692 57 5120 Income Tax Expense TOTAL 424,421 00 424,421 00 12,934 68 12,934 68 434,669 68 434,669 68 NET INCOME

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#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

#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.

~~~~~Below is the information for #32

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.

Account		Unadjusted Trial Balance		Adjusting Entries		Adjusted Trial Balance
Number	Name	Debit	Credit	Debit	Credit	Debit	Credit
1110	Cash	87,962.02	-	-	-	87,962.02	-
1120	Accounts Receivable	1,135.00	-	5,750.00	-	6,885.00	-
1130	Prepaid Insurance	6,480.00	-	-	270.00	6,210.00	-
1140	Prepaid Rent	4,200.00	-	-	2,100.00	2,100.00	-
1150	Office Supplies	530.00	-	-	316.00	214.00	-
1211	Office Equip.	2,011.00	-	-	-	2,011.00	-
1212	Accum. Depr.-Office Equip.	-	-	-	25.90	-	25.90
1311	Computer Equip.	203,520.00	-	-	-	203,520.00	-
1312	Accum. Depr.-Computer Equip.	-	-	-	2,416.67	-	2,416.67
1411	Building Cost	95,000.00	-	-	-	95,000.00	-
1412	Accum. Depr.-Building	-	-	-	250.00	-	250.00
1510	Land	18,000.00	-	-	-	18,000.00	-
2101	Accounts Payable	-	1,395.00	-	-	-	1,395.00
2102	Advanced Payments	-	-	-	-	-	-
2103	Interest Payable	-	-	-	1,305.11	-	1,305.11
2105	Salaries Payable	-	-	-	501.00	-	501.00
2106	Income Taxes Payable	-	-	-	-	-	-
2201	Mortgage Payable	-	101,700.00	-	-	-	101,700.00
2202	Notes Payable	-	93,750.00	-	-	-	93,750.00
3100	Capital Stock	-	211,176.00	-	-	-	211,176.00
3200	Retained Earnings	-	-	-	-	-	-
3300	Dividends	1,432.98	-	-	-	1,432.98	-

4100	Computer & Consulting Revenue	-	16,400.00	-	5,750.00	-	22,150.00
5010	Rent Expense	-	-	2,100.00	-	2,100.00	-
5020	Salary Expense	1,670.00	-	501.00	-	2,171.00	-
5030	Advertising Expense	325.00	-	-	-	325.00	-
5040	Repairs & Maint. Expense	1,290.00	-	-	-	1,290.00	-
5050	Oil & Gas Expense	865.00	-	-	-	865.00	-
5080	Supplies Expense	-	-	316.00	-	316.00	-
5090	Interest Expense	-	-	1,305.11	-	1,305.11	-
5100	Insurance Expense	-	-	270.00	-	270.00	-
5110	Depreciation Expense	-	-	2,692.57	-	2,692.57	-
5120	Income Tax Expense	-	-	-	-	-	-





	TOTAL	424,421.00	424,421.00	12,934.68	12,934.68	434,669.68	434,669.68
	NET INCOME