Byte of Accounting, Inc. Juan Gonzalez 1506 \begin{tabular}{|l|l|} \hline 02. & June1:ByteofAccounting,Inc.issued2,182sharesofitscommonstockafteracquiringfromCourtney$34,650incash,computerequipmentwithafairmarketvalueof$10,500andofficeequipmentwithafairvalueof$672. \\ \hline \end{tabular} \begin{tabular}{|c|l|} \hline 03. & June1:ByteofAccounting,Inc.acquired$50,400incashfromJuanGonzalezandissued2,400sharesofitscommonstock. \\ \hline \end{tabular} \begin{tabular}{|c|l|} \hline 04. & June2:Adownpaymentof$36,000incashwasmadeonadditionalcomputerequipmentthatwaspurchasedfor$180,000.Afive-yearnotewasexecutedbyByteforthebalance. \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 05. & June4:Additionalofficeequipmentcosting$400waspurchasedoncreditfromDiscountComputerCorporation. \\ \hline \end{tabular} \begin{tabular}{|c|l|} \hline 06. & June8:Unsatisfactoryofficeequipmentcosting$80wasreturnedtoDiscountComputerforcredittobeappliedagainsttheoutstandingbalanceowedbyByte. \\ \hline \end{tabular} \begin{tabular}{|c|l|} \hline 07. & June10:Bytepaid$27,500onthebalanceitowedontheJune2purchaseofcomputerequipment. \\ \hline 08. & June14:Aone-yearinsurancepolicycoveringitscomputerequipmentwaspurchasedbyBytefor$5,976incash.TheeffectivedateofthepolicywasJune16. \\ \hline \end{tabular} 09. June 16: Computer consultation revenue of $7,750 was received. June 16: Byte purchased a building and the land it is on for $107,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $17,000. 10. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $10,700 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1 . \begin{tabular}{l|l} 11. June 17: Cash of $9,600 was paid for rent for June, July, August and September. Put the total \\ amount into the Prepaid Rent account. \end{tabular} 12. June 17: Received a bill of $300 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,800 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $675cash. 15. June 21: Accounts payable in the amount of $320 were paid. Byte of Accounting, Inc. Juan Gonzalez 1506 \begin{tabular}{|c|l|} \hline Transaction & \multicolumn{1}{|c|}{ Description of transaction } \\ \hline 16. & June 22: Paid the advertising bill that was received on June 17. \\ \hline \end{tabular} \begin{tabular}{l|l} 17. & June22:Receivedabillfor$1,240fromComputerPartsandRepairCo.forrepairstothecomputerequipment. \\ \hline \end{tabular} 18. June 22: Paid salaries of $960 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,845 was received on billings. \begin{tabular}{l|l} 20. & June23:Purchasedofficesuppliesfor$505oncredit.Recordthepurchaseasanincreasetotheassets. \end{tabular} 21. June 28: Billed $6,015 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,699 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 $960 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. June 30: Paid a cash dividend of $0.22 per share to the three shareholders of Byte. 26. [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, July, August and September. Expense the amount associated with one month's rent. 28. A physical inventory showed that only $202.00 worth of office supplies remained on hand as of June 30. The annual interest rate on the mortgage payable was 9.25 percent. Interest expense for one-half 29. month should be computed because the building and land were purchased and the liability incurred on June 16. \begin{tabular}{l|l} 30. & InformationrelatingtotheprepaidinsurancemaybeobtainedfromthetransactionrecordedonJune14.Expensetheamountassociatedwithonehalfmonthsinsurance. \end{tabular} \begin{tabular}{l|l} 31. & AreviewofBytesjobworksheetsshowthatthereareunbilledrevenuesintheamountof$5,750fortheperiodofJune2830. \end{tabular} 32. The fixed assets have estimated useful lives as follows: Byte of Accounting, Inc. Juan Gonzalez 1506 \begin{tabular}{l|l} 33. & Areviewofthepayrollrecordsshowthatunpaidsalariesintheamountof$576areowedbyByteforthreedays,June2830. \end{tabular} 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 $144,000. On June 10 , eight days later, $27,500 was repaid. Interest expense must be calculated on the $144,000 for eight days. In addition, interest expense on the $116,500 balance of the loan ($144,000 less $27,500=$116,500) 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 Close the revenue accounts. Close the expense accounts. 38. Close the income summary account. \begin{tabular}{l|ll} 39. & Close the dividends account. \end{tabular} Chart of Acrounte Note: You can only enter data into the yellow filled cells. A Byte of Accounting, Inc. Income Statement For Month Ending June 30, 2023 Revenues Computer \& Consulting Revenue A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 30, 2023 B C D E F A Byte of Accounting, Inc. Balance Sheet As of June 30,2023 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total Long-Term Assets Office Equip. Accum. Depr.Office Equip. Computer Equip. Accum. Depr-Computer Equip. Buiding Cost Accum. Depr-Building Land Total Total Assets B c D F Liabilities Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities Stockholder's Equity Capital Stock Retained Earnings Total Total Liabilities and Stockholder's Equity os General Journal | Worksheet I Income Statement | Changes in Retained Earnin R. Accessibility: Investigate Byte of Accounting, Inc. Juan Gonzalez 1506 \begin{tabular}{|l|l|} \hline 02. & June1:ByteofAccounting,Inc.issued2,182sharesofitscommonstockafteracquiringfromCourtney$34,650incash,computerequipmentwithafairmarketvalueof$10,500andofficeequipmentwithafairvalueof$672. \\ \hline \end{tabular} \begin{tabular}{|c|l|} \hline 03. & June1:ByteofAccounting,Inc.acquired$50,400incashfromJuanGonzalezandissued2,400sharesofitscommonstock. \\ \hline \end{tabular} \begin{tabular}{|c|l|} \hline 04. & June2:Adownpaymentof$36,000incashwasmadeonadditionalcomputerequipmentthatwaspurchasedfor$180,000.Afive-yearnotewasexecutedbyByteforthebalance. \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline 05. & June4:Additionalofficeequipmentcosting$400waspurchasedoncreditfromDiscountComputerCorporation. \\ \hline \end{tabular} \begin{tabular}{|c|l|} \hline 06. & June8:Unsatisfactoryofficeequipmentcosting$80wasreturnedtoDiscountComputerforcredittobeappliedagainsttheoutstandingbalanceowedbyByte. \\ \hline \end{tabular} \begin{tabular}{|c|l|} \hline 07. & June10:Bytepaid$27,500onthebalanceitowedontheJune2purchaseofcomputerequipment. \\ \hline 08. & June14:Aone-yearinsurancepolicycoveringitscomputerequipmentwaspurchasedbyBytefor$5,976incash.TheeffectivedateofthepolicywasJune16. \\ \hline \end{tabular} 09. June 16: Computer consultation revenue of $7,750 was received. June 16: Byte purchased a building and the land it is on for $107,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $17,000. 10. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $10,700 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1 . \begin{tabular}{l|l} 11. June 17: Cash of $9,600 was paid for rent for June, July, August and September. Put the total \\ amount into the Prepaid Rent account. \end{tabular} 12. June 17: Received a bill of $300 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,800 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $675cash. 15. June 21: Accounts payable in the amount of $320 were paid. Byte of Accounting, Inc. Juan Gonzalez 1506 \begin{tabular}{|c|l|} \hline Transaction & \multicolumn{1}{|c|}{ Description of transaction } \\ \hline 16. & June 22: Paid the advertising bill that was received on June 17. \\ \hline \end{tabular} \begin{tabular}{l|l} 17. & June22:Receivedabillfor$1,240fromComputerPartsandRepairCo.forrepairstothecomputerequipment. \\ \hline \end{tabular} 18. June 22: Paid salaries of $960 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,845 was received on billings. \begin{tabular}{l|l} 20. & June23:Purchasedofficesuppliesfor$505oncredit.Recordthepurchaseasanincreasetotheassets. \end{tabular} 21. June 28: Billed $6,015 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,699 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 $960 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. June 30: Paid a cash dividend of $0.22 per share to the three shareholders of Byte. 26. [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, July, August and September. Expense the amount associated with one month's rent. 28. A physical inventory showed that only $202.00 worth of office supplies remained on hand as of June 30. The annual interest rate on the mortgage payable was 9.25 percent. Interest expense for one-half 29. month should be computed because the building and land were purchased and the liability incurred on June 16. \begin{tabular}{l|l} 30. & InformationrelatingtotheprepaidinsurancemaybeobtainedfromthetransactionrecordedonJune14.Expensetheamountassociatedwithonehalfmonthsinsurance. \end{tabular} \begin{tabular}{l|l} 31. & AreviewofBytesjobworksheetsshowthatthereareunbilledrevenuesintheamountof$5,750fortheperiodofJune2830. \end{tabular} 32. The fixed assets have estimated useful lives as follows: Byte of Accounting, Inc. Juan Gonzalez 1506 \begin{tabular}{l|l} 33. & Areviewofthepayrollrecordsshowthatunpaidsalariesintheamountof$576areowedbyByteforthreedays,June2830. \end{tabular} 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 $144,000. On June 10 , eight days later, $27,500 was repaid. Interest expense must be calculated on the $144,000 for eight days. In addition, interest expense on the $116,500 balance of the loan ($144,000 less $27,500=$116,500) 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 Close the revenue accounts. Close the expense accounts. 38. Close the income summary account. \begin{tabular}{l|ll} 39. & Close the dividends account. \end{tabular} Chart of Acrounte Note: You can only enter data into the yellow filled cells. A Byte of Accounting, Inc. Income Statement For Month Ending June 30, 2023 Revenues Computer \& Consulting Revenue A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 30, 2023 B C D E F A Byte of Accounting, Inc. Balance Sheet As of June 30,2023 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total Long-Term Assets Office Equip. Accum. Depr.Office Equip. Computer Equip. Accum. Depr-Computer Equip. Buiding Cost Accum. Depr-Building Land Total Total Assets B c D F Liabilities Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities Stockholder's Equity Capital Stock Retained Earnings Total Total Liabilities and Stockholder's Equity os General Journal | Worksheet I Income Statement | Changes in Retained Earnin R. Accessibility: Investigate