68 32 69 70 71 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 $7,500. The office equipment has a scrap value of $500. The computer equipment has no scrap value. Calculate the depreciation for one month. 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. 72 73 33. 74 75 34. 78 17 The note payable relating to the June 2, and 10 transactions is a five-year note, with interest at the rate of 12 percent anually. 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 S136,000. On June 10, eight days later, $26,000 was repaid. Interest expense must be calculated on the $136,000 for eight days: In addition, interest expense on the $110,000 balance of the loan ($136,000 less $26,000 = $110,000) must be calculated for the 20 days remaining in the month of June. 38 79 30 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 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. 3 Transaction Date Account Name Description Debit Credit 32 32 32 32 Jun 30 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense 1412 Accum. Depr.-Building Need a Descnption 1312 Accum Depr Comput Need a Description 1212 Accum Depr.-Office Need a Description 33 33 Jun 30 Jun 30 5020 Salary Expense 2105 Salaries Payable Need a Description 4 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 1178 179 34 34 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable Need a Description 35 35 Jun 30 Jun 30 5120 Income Tax Expense 2106 Income Taxes Payable Need a Description on 000) B Account Unadjusted Trial Balance Adjusting Entries Adjusted Tral Balance 7 Number Name Debit Credit Debit Credit Debit Credit 8 1110 Cash 38,350 92 38,350.92 9 1120 Accounts Receivable 1,261 00 1.261 00 10 1130 Prepaid Insurance 11 1140 Prepaid Rent 4,200.00 2,100.00 2,100.00 12 1150 Office Supplies 530.00 316.00 214.00 13 1211 Office Equip 2,116 00 2.116.00 14 1212 Accum Depr-Office Equip 15 1311 Computer Equip 227,400.00 227 400.00 16 1312 Accum Depr.-Computer Equip 17 1411 Building Cost 120,000 00 120,000.00 18 1412 Accum Depr Building 19 1510 Land 23,000.00 23,000.00 20 2101 Accounts Payable 1,760.00 1,760.00 21 2102 Advanced Payments 22 2103 Interest Payable 2105 Salaries Payable 24 2106 Income Taxes Payable 25 2201 Mortgage Payable 128,700.00 128,700.00 26 2202 Notes Payable 110.000.00 110,000.00 27 3100 Capital Stock 169,960.00 169,960.00 28 3200 Retained Earnings 29 3300 Dividends 2,032.08 2,03208 30 31 4100 Computer & Consulting Revenue 19 175.00 19,175.00 32 5010 Rent Expense 2,100.00 2,100.00 33 5020 Salary Expense 1.770.00 1,770.00 Chart of Accounts Transactions General Journal Worksheet Income Statement Changes in Retained Earnings 23 G H 2103 Interest Payable 2105 Salanes Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3200 Retained Earnings 3300 Dividends 128,700 00 110,000.00 169 960.00 128.700.00 110 000 00 169 960.00 2.032.08 2,032 08 19,175 00 19.175.00 2,100.00 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Income Tax Expense 1,770 00 250.00 1 215.00 990.00 2,100.00 1,770.00 250 00 1.215.00 990 00 316.00 316.00 6,480.00 6.480.00 TOTAL 429,595.00 429,595,00 2,416 00 2,416.00 429,595.00 429,595.00