C A 1 2 3 Transaction Byte of Accounting, Inc. Justin Moore 5810 Description of transaction June 1: Byte of Accounting, Inc. issued 2,590 shares of its common stock to Jeremy after $26,500 in cash and computer equipment with a fair market value of $38,250 were received. 01. 4 5 02. June 1: Byte of Accounting, Inc. issued 1,817 shares of its common stock after acquiring from Courtney $33,750 in cash, computer equipment with a fair market value of $10,500 and office equipment with a fair value of $1,175. 8 7 03. June 1: Byte of Accounting, Inc. acquired $75,000 in cash from Justin Moore and issued 3,000 shares of its common stock 9 04 June 2: A down payment of $35,000 in cash was made on additional computer equipment that was purchased for $175,000. A five-year note was executed by Byte for the balance. 10 11 05 June 4: Additional office equipment oosting $400 was purchased on credit from Discount Computer Corporation GN 06. June 8: Unsatisfactory office equipment costing $80 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte 14 07. June 10: Byte paid $26,750 on the balance it owed on the June 2 purchase of computer equipment 16 17 08. June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $4,968 in cash. The effective date of the policy was June 16. 18 19 20 21 09. June 16: Computer consultation revenue of $8,000 was received 10. June 16: Byte purchased a building and the land it is on for S101,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $16,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of S10.100 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 22 11. June 17: Cash of $3,200 was paid for rent for June and July. Put the total amount into the Prepaid Rent account. + Welcome Chart of Accounts Transactions A General Journal Works A B 25 26 12. June 17: Received a bill of $325 from the local newspaper for advertising 27 13. June 21: Billed various miscellaneous local customers $4,100 for consulting services performed. 28 29 14. June 21: A fax machine for the office was purchased for $650 cash. 15. June 21: Accounts payable in the amount of $320 were paid. 30 31 32 33 34 35 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,215 from Computer Parts and Repair Co, for repairs to the computer equipment 36 37 38 39 18. June 22: Paid salaries of $910 to equipment operators for the week ending June 18. 40 19. June 23: Cash in the amount of $3,285 was received on billings. 20. June 23: Purchased office supplies for $655 on credit. Record the purchase as an increase to the assets. 41 142 43 44 45 21. June 28: Billed S5,910 to miscellaneous customers for services performed to June 25. 22 June 29: Cash in the amount of $5,600 was received for billings. 23 June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 46 47 48 49 50 51 24 June 29: Paid salaries of $910 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $940 from O&G Oil and Gas Co. 52 53 26. June 30: Paid a cash dividend of 50.21 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 54 55 56 57 Adjusting Entries - Round to two decimal places. 27. 58 The rent payment made on June 17 was for June and July. Expense the amount associated with one month's rent Welcome Chart of Accounts Transactions General Journal Works E10 x fx A B depreciation for one month. 72 73 33 A review of the payroll records show that unpaid salaries in the amount of S546 are owed by Byte for three days, June 28 - 30. 74 75 34. 76 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 $140,000. On June 10, eight days later, $26,750 was repaid. Interest expense must be calculated on the $140,000 for eight days. In addition, interest expense on the $113,250 balance of the loan (S140,000 less $26,750 - $113,250) must be calculated for the 20 days remaining in the month of June:) 77 78 79 80 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) 81 B2 Closing Entries 84 85 36. Close the revenue accounts, 86 37 Close the expense accounts, 87 B8 89 90 38 Close the income summary account 39. Close the dividends account 91 92 93 94 95 B D E H 1 2 A Byte of Accounting, Inc. General Joumal Note: You can only enter det inte the yellow led call. 3 Date Account Dober Credit Transaction Name Description 01 02 03 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 04 05 06 07 30 40 08 43 45 Welcome Chart of Accounts Transactions General Journal Worksheet . Mace Jx B D E F G 1 2 A Byte of Accounting, Inc. Income Statement For Month Ending January 0, 1900 Revenues Computer & Consulting Revenue 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Ol & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Total Expenses Net Income Before Tax JITU Income Tax Expense und so we do Net Income After Tax A1 XVfx A B D E 1 2 3 A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending January 0, 1900 4 5 Total 6 7 8 9 TO Balance, Beginning of Period Net Income Dividends Balance, End of Period 512 13 10 Homo Insert Draw Page Layout Formulas Data Review View Tell me Arial 10 9 ub Wrap Teod B a Av Marge & Center A1 Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates. 4 x A B D E G H A Byte of Accounting, Inc. Balance Sheet As of January 0, 1900 1 2 3 4 5 6 7 8 9 10 11 12 Assets Current Asset Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total 14 15 17 12 w 20 21 Long-Term Assets Office Equip Acoum. Depr.-Office Equip Computer Equip Acoum. Depr.-Computer Equip Building Cost Accum. Dopr.-Building Land Total Total Assets 24 28 30 Liabilities 34 36 37 Current Liabilities Accounts Payable Advanced Payment Interest Payable Salais Payable Income Taxes Payable Total 45 Long-Term Liabilities Mortgage Payable Noins Payable Total Total Labios Welcome Transactions Workshoot Chart of Accounts General Journal