34 and 35 only

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 34 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable 34 Need a Description 35] 35 Jun 30 Jun 30 5120|Income Tax Expense 2106 Income Taxes Payable Need a Description Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2,620 shares of its common stock to Jeremy after $29,960 in cash and computer equipment with a fair market value of $43,400 were received. 02. June 1: Byte of Accounting, Inc. issued 2,122 shares of its common stock after acquiring from Courtney $43,400 in cash, computer equipment with a fair market value of $15,120 and office equipment with a fair value of $896. 03. June 1: Byte of Accounting, Inc. acquired $78,400 in cash from Arynn Cooper and issued 2,800 shares of its common stock. 04. June 2: A down payment of $29,000 in cash was made on additional computer equipment that was purchased for $145,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $300 was purchased on credit from Discount Computer Corporation. 06. June 8: Unsatisfactory office equipment costing $60 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $22,250 on the balance it owed on the June 2 purchase of computer 08. June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $6,480 in cash. The effective date of the policy was June 16. 09. June 16: Computer consultation revenue of $6,500 was received. 10. 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. 11. June 17: Cash of $4,200 was paid for rent for June and July. Put the total amount into the Prenaid Rent acco 12. June 17: Received a bill of $325 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,200 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $875 cash. 15. June 21: Accounts payable in the amount of $240 were paid. 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,290 from Computer Parts and Repair Co. for repairs to the computer equipment. 18. June 22: Paid salaries of $835 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,365 was received on billings. 20. June 23: Purchased office supplies for $530 on credit. Record the purchase as an increase to the 21. June 28: Billed $5,700 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,400 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 $835 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $865 from O & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.19 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.] 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 34 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable 34 Need a Description 35] 35 Jun 30 Jun 30 5120|Income Tax Expense 2106 Income Taxes Payable Need a Description Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2,620 shares of its common stock to Jeremy after $29,960 in cash and computer equipment with a fair market value of $43,400 were received. 02. June 1: Byte of Accounting, Inc. issued 2,122 shares of its common stock after acquiring from Courtney $43,400 in cash, computer equipment with a fair market value of $15,120 and office equipment with a fair value of $896. 03. June 1: Byte of Accounting, Inc. acquired $78,400 in cash from Arynn Cooper and issued 2,800 shares of its common stock. 04. June 2: A down payment of $29,000 in cash was made on additional computer equipment that was purchased for $145,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $300 was purchased on credit from Discount Computer Corporation. 06. June 8: Unsatisfactory office equipment costing $60 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $22,250 on the balance it owed on the June 2 purchase of computer 08. June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $6,480 in cash. The effective date of the policy was June 16. 09. June 16: Computer consultation revenue of $6,500 was received. 10. 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. 11. June 17: Cash of $4,200 was paid for rent for June and July. Put the total amount into the Prenaid Rent acco 12. June 17: Received a bill of $325 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,200 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $875 cash. 15. June 21: Accounts payable in the amount of $240 were paid. 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,290 from Computer Parts and Repair Co. for repairs to the computer equipment. 18. June 22: Paid salaries of $835 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,365 was received on billings. 20. June 23: Purchased office supplies for $530 on credit. Record the purchase as an increase to the 21. June 28: Billed $5,700 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,400 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 $835 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $865 from O & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.19 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.]