Byte of Accounting, Inc. Tacho Description of transaction June 1: Byte of Accounting, Inc. issued 2.610 shares of its common stock to Jerenly after $262.50 in cash and computer cuipment with a fait market value of $39.000 were tuceived June 1: Byte of Accounting, Inc. issued 2,025 shares of its common stock after acquiring from Courtney $38,250 in cash.computer equipment with a finir market value of $11,000 and office Teguiment with a fair value of 5875 and issued 3,100 June : Byte of Accounting. Inc, acquired 585,000 in cash from shares of its common stock June 2: A down payment of $34.000 in cash was made on additional computer equipment that was purchased for $170.000. A five-year note was executedly Byte for the balance -15 June 4. Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation 06 June 8. Unsatisfactory office equipment costing 5100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte 2 June 10: Byte paid $26,000 on the balance it owed on the June 2 purchase of computer equipment June 14: A one-year insurance policy covering its computer equipment was purchased by Hyre for $5.472 in cash The effective date of the policy was June 16 June 16: Computer consultation revenue of $7,500 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, 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 equalunnual installments heginning July 1 June 17: Cash of $5,700 was paid for rent for June, July and August. Put the total amount into the Prepaid Rent account June 174 Received a bill of $350 from the local newspaper for advertising June 21: Billed various miscellaneous local customers $4,500 for consulting services performed Tunc 21: A fax machine for the office was purchased for $725 cash. Hune 21: Accounts payable in the amount of $100 were paid Byte of Accounting. Ine. Description of transaction June 22: Paid the advertising bill that was received on June 17, June 02 Received a bill for SI 215 from Computer Parts and Repair Co, for repairs to the computer equipment June 22: Paid salaries of $885 to equipment operators for the week ending June 18 June 23: Cash in the amount of $3,605 was received on billing June 23. Purchased Office Supplies for $705 on credit. Record the purchase as an increase to the June 28: Billed $5.280 to miscellaneous customers for services performed to June 25 June 29: Cash in the amount of $5.001 was received for hillines June 29. Paid the bill received on June 22. from Computer Parts and Repairs Co. June 29: Paid salaries of $885 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 50.15 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 Adjusting Entries - Round to two decimal places The rent payment made on June 17 was for June July and August. Expense the amount associated with one month's rent. A physical inventory showed that only $292.00 worth of office supplies remained on hand as of June 30 90 The annual interest rate on the mortgage payable was 7.50 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 30 Information relating to the prepaid insurance may be obtained from the transaction recinded on June 14. Expense the amount associated with one half month's insurance A review of Byte's job worksheets show that there are unbilled revenues in the amount of 55.625 for the period of June 28-30. 31. 32 The fixed assets have estimated useful lives as follows: Byte of Accounting, Inc. Transaction Description of transaction Building - 31.5 years Computer Equipment - 3.0 years Office Equipment- 70 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 serap value of $450. The computer equipment has Ino scrap value Calculate the depreciation for one month 33 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 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 $136,000. 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 S110.000 balance of the loan (S136.000 less $26,000 SI 10,000) 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 36. Close the revenue accounts 37 Close the expense accounts 38. Close the income summary account. 39 Close the dividends account. A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Date Account Transaction Name Description De bit Credit 01 01 01 Jun 01 Jun 01 Jun 01 1110 Cash 1311 Computer Equip 3100 Capital Stock collected on account collected on account collected on account 26.250.00 39,000.00 65,250.00 02 02 02 02 Jun 01 Jun 01 Jun 01 Jun 01 1110 Cash 1311 Computer Equip 1211 Office Equip 3100 Capital Stock collected on account collected on account collected on account collected on account 38,750.00 11,000.00 875.00 50,625.00 03 03 Jun 01 Jun 01 85,000.00 1110 Cash 3100 Capital Stock collected on account collected on account 85,000.00 170,000.00 04 04 04 Jun 02 Jun 02 Jun 02 1311 Computer Equip 1110 Cash 2202 Notes Payable purchases in cashion acct purchases in cash/on acct purchases in cash/on acct 34,000.00 136.000.00 A Byte of Accounting, Inc. General Journal Hote: You can only enter data into the yellow filled cells. Transaction De bit Date Account 05 05 Name 1211 Office Equip 2101 Accounts Payable Jun 04 Jun 04 Credit Description office purchases office purchases 500.00 500.00 06 06 Jun 08 Jun 08 2101 Accounts Payable 1211 Office Equip reverse transaction to previous reverse transaction to previous 100.00 100.00 07 07 Jun 10 Jun 10 2202 Notes Payable 1110 Cash pymnt on note payable from 6/2 pymnt on note payable from 6/2 26.000.00 26,000.00 08 5.472.00 08 Jun 14 Jun 14 Jun 14 Jun 14 1130 Prepaid Insurance 1110 Cash 5100 Insurance Expense 1110 cash 12mth ppd equip insurance 12mth ppd equip insurance Debit Before Credit 12mth ppd equip insurance 5.472.00 08 08 456 00 456.00 A Byte of Accounting, Inc. General Journal Hote: You can only enter data into the yellow filled cells. Account Transaction Date Name Description De bit Credit 09 09 Jun 16 Jun 16 1110 Cash consultation services 4100 Computer & Consultir consultation services 7,500.00 7,500.00 10 10 10 10 Jun 16 Jun 16 Jun 16 Jun 16 1510 Land 1411 Building Cost 1110 Cash 2201 Mortgage Payable land/bldg purchase land/bldg purchase land/bldg purchase land/bldg purchase 17,000.00 90,000.00 10.700.00 96,300.00 11 11 Jun 17 Jun 17 1140 Prepaid Rent 1110 Cash rent rent 5.700.00 5.700.00 12 12 Jun 17 Jun 17 5030 Advertising Expense adv exp 2101 Accounts Payable 350.00 adv exp 350 00 G H A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Account De bit Transaction Date 13 13 Name Description 1120 Accounts Receivable comp consul 4100 Computer & Consultir comp consul Credit 4,500.00 4,500.00 14 14 Jun 21 Jun 21 1211 Office Equip 1110 Cash office equip office equip 725.00 725.00 15 15 Jun 21 Jun 21 2101 Accounts Payable 1110 Cash accts payable accts payable 400.00 400.00 16 16 Jun 22 Jun 22 2101 Accounts Payable 1110 Cash advertising bill advertising bill 1.215.00 1.215.00 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Account De bit Transaction Date Name Description Credit 17 17 Jun 22 Jun 22 5040 Repairs & Maint. Expe repairs 2101 Accounts Payable repairs 1.215.00 1,215.00 18 18 Jun 22 Jun 22 5020 Salary Expense 1110 Cash 885.00 paidsalary week end june 18 paidsalary week end june 18 885.00 19 Jun 23 Jun 23 1110 Cash received cash from billings 1120 Accounts Receivable received cash from billings 3,605.00 19 3,605.00 20 20 Jun 23 Jun 23 1150 Office Supplies 2101 Accounts Payable office supply purchase office supply purchase 705.00 705.00 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Debit Account 21 21 Credit Name Description 1120 Accounts Receivable bill misc cust for services 4100 Computer & Consultir bill misc cust for services Jun 28 Jun 28 5.280.00 5,280.00 6 7 8 9 0 1 22 22 Jun 29 Jun 29 1110 Cash cash from billings 1120 Accounts Receivable cash from billings 5.001.00 5,001.00 3 4 5 6 7 B 9 23 23 Jun 29 Jun 29 2101 Accounts Payable 1110 cash bill to repair n services pald bill to repair n services paid 1.215.00 1.215.00 1 2 24 24 Jun 29 Jun 29 5020 Salary Expense 1110 Cash paid week jun 18 salary paid week jun 18 salary 885.00 885.00 4 5 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Date Account Transaction Description De bit 25 25 Jun 30 Jun 30 Name 5050 Oil & Gas Expense gas bill 2101 Accounts Payable Credit 865.00 gas bill 865.00 26 Jun 30 Jun 30 3300 Dividends 1110 Cash paid dividends paid dividends 1,205,25 26 1.205.25 27 27 Jun 30 Jun 30 5010 Rent Expense 1140 Prepaid Rent month rent month rent 1,900.00 1.900.00 28 28 Jun 30 Jun 30 5080 Supplies Expense 1150 Office Supplies end of mth office supplies end of mth office supplies 292.00 292.00 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Date Account Transaction Name De bit Description Credit 29 29 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable interest interest 321.00 321.00 30 30 Jun 30 Jun 30 5100 Insurance Expense 1/2 months ppd insur 1130 Prepaid Insurance 1/2 months ppd insur 228.00 228.00 31 Jun 30 321 A Byte of Accounting, Inc. General Journal Hote: You can only enter data into the yellow filled cells. Transaction Date Account 33 33 De bit Name 5020 Salary Expense 2105 Salaries Payable Jun 30 Jun 30 Description unpaid sal unpaid sal Credit 531.00 531.00 34 Jun 30 35 Jun 30 36 Jun 30 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Date Account Transaction Name Description Debit 37 Jun 30 Credit 38 Jun 30 39 Jun 30 PLEASE HELP WITH NUMBERS 31-35 WITH DETAILED EXPLANATIONS ON HOW YOU GOT THE ANSWERS AND HOW YOU DID THE CALCULATIONS PLEASE! PLEASE POST DETAILS AND EXPLANATIONS FOR ANSWERS TYPED NEATLY. IT IS HARD TO READ HAND- WRITTEN NOTES ON CHEGG