Calculating the Tax Expense and filling out an Income statement. somewhere my numbers are wrong.

Account Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Number Name Debit Credit Debit Credit Debit Credit 1110 Cash 147,745.80 147,745.80 1120 Accounts Receivable 1.143.00 9,000.00 10.143.00 1130 Prepaid Insurance 242.00 242.00 1140 Prepaid Rent 5,000.00 2.500.00 2,500.00 1150 Office Supplies 555.00 330.00 225.00 3 1211 Office Equip 1.717.00 1.717.00 1212 Accum. Depr.-Office Equip 16.87 16.87 1311 Computer Equip. 217,920.00 217.920.00 1312 Accum. Depr.-Computer Equip 3,632.00 3,632.00 7 1411 Building Cost 115,000.00 115,000.00 8 1412 Accum. Depr.-Building 284.39 284.39 9 1510 Land 22,000.00 22,000.00 20 2101 Accounts Payable 26,595.00 26,595.00 1 2102 Advanced Payments 22 2103 Interest Payable 1,099.25 1,099.25 23 2105 Salaries Payable 546.00 546.00 24 2106 Income Taxes Payable 25 2201 Mortgage Payable 123,300.00 26 2202 Notes Payable 123,300.00 132,000.00 27 3100 Capital Stock 132,000.00 222,912.00 28 3200 Retained Earnings 222,912.00 9,000.00 29 3300 Dividends 9,000.00 1,651.20 30 1,651.20 31 4100 Computer & Consulting Revenud 18,008,00 32 5010 Rent Expenso 18,008,00 5020 Salary Expense 2,500.00 2.500.00 1,820.00 546,00 34 5030 Advertising Expense 2.366.00 400.00 35 5040 Repairs & Maint. Expense 400.00 1.265.00 36 5050 Oil & Gas Expense 1,265.00 790.00 37 5080 Supplies Expense 790.00 38 5090 Interest Expense 330.00 330.00 39 5100 Insurance Expense 1.099.25 1.099.25 5,808.00 40 5110 Depreciation Expense 242.00 6,050.00 41 5120 Income Tax Expense 3.933.26 3,933.26 42 Introduction FAQ Welcome Chart of Accounts Transactions General Journal Worksheet Income State Ready 33 Byte of Accounting, Inc. Bridgette Welch 7435 action Description of transaction 01 June 1: Byte of Accounting, Inc. acquired $91,800 in cash from Lauryn and issued 3.400 shares of its common stock 02 June 1: Byte of Accounting, Inc. issued 2,620 shares of its common stock to Bridgette Welch after $30.240 in cash and computer equipment with a fair market value of $40,500 were received 03 June 1: Byte of Accounting, Inc. issued 2,236 shares of its common stock after acquiring from Courtney $17.250 in cash, computer equipment with a fair market value of $12,420 and office equipment with a fair value of $702 04 June 2. A down payment of $33,000 in cash was made on additional computer equipment that was purchased for $165,000. A five-year note was executed by Byte for the balance. 05 June 4. Additional office equipment costing S300 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 $25,250 on the balance it owed on the June 2 purchase of computer equipment 08 June 14. A one-year insurance policy covering its computer equipment was purchased by Byte for $5,808 in cash. The effective date of the policy was June 16 09. June 16. A check in the amount of $8,000 was received for consulting reverse 10 June 16 Byte purchased a building and the land it is on for $137,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $22,000. The balance of the cost is to be allocated to the building. Byto made a cash down payment of $13.700 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1 11 June 17 Cash of $5,000 was paid for rent for June and July Put the total amount into the Prepaid Rent account 12 June 17 Received a bill of $400 from the local newspaper for advertising Introduction FAQ Welcome Chart of Accounts Transactions Gend B 12 June 17: Received a bill of $400 from the local newspaper for advertising 13 June 21: Accounts payable in the amount of $240 were paid 14 June 21: A fax machine for the office was purchased for $775 cash 15 June 21 Billed various miscellaneous local customers $4,200 for consulting services performed. 16, June 22 Paid salaries of $910 to equipment operators for the week ending June 18. 17 June 22. Received a bill for $1.265 from Computer Parts and Repair Co for repairs to the computer equipment 18 June 22: Paid the advertising bill that was received on June 17 19 June 23 Purchased office supplies for $555 on credit. Record the purchase as an increase to the assets. 20 June 23: Cash in the amount of $3,365 was received on billings 21 June 28: Billed 55,805 to miscellaneous customers for services performed to June 25 22 June 29. Paid the bill received on June 22, from Computer Parts and Repairs Co. 2 23 June 29 Cash in the amount of $5,500 was received for billings 0 1 24 June 29 Paid salaries of S910 to equipment operators for the week ending June 25. 2 -3 4 25 June 30: Received a bill for the amount of $790 from O&G Oil and Gas Co 26 June 30 Paid a cash dividend of S0.20 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 55 56 57 58 Adjusting Entries - Round to two decimal places. 27 The rent payment made on June 17 was for June and July: Expense the amount associated with one month's rent 59 60 28 A playsical inventory showed that only $225.00 worth of office supplies remained on hand as of June 30 81 Introduction FAQ Welcome Chart of Accounts Transactions 29 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 recorded on June 14. Expense the amount associated with one half month's insurance 31 A review of Byte's job worksheets show that there are unbilled revenues in the amount of $9,000 for the period of June 28-30. 32 The fixed assets have estimated useful lives as follows: Building - 31.5 years Computer Equipment - 5,0 years Office Equipment - 20 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 $300. The computer equipment has no scrap value. Calculate the depreciation for one mouth. 33 A review of the payroll records show that unpaid salaries in the amount of $546.00 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 $132.000. On June 10, eight days later, $25,250 was tepaid. Interest expense must be calculated on the $132.000 for eight days. In addition, interest expease on the S106,750 balance of the loan (S132,000 less 525 250 - $106,750) must be calculated for the 20 days remaining in the month of June. 30 31 35 Income taxes are to be computed at the rate of 25 percent of met 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 83 84 Closing Entries 85 86 36 Close the revenge accounts 87 88 37 Close the expense accounts 8 8 38 Close the income summary account Introduction FAQ Welcome Chart of Accounts Tran Ready A Byte of Accounting, Inc. Income Statement For Month Ending June 30, 2021 Revenues Computer & Consulting Revenue $ 18,008,00 Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Oil & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Total Expenses $ 2,500.00 $ 2,366.00 $ 400.00 $ 1.265.00 $ 790.00 $ 330.00 $ 1,099.25 $ 6,050.00 $ 3,933.26 18,733.51 Net Income Before Tax Income Tax Expense (Round to two decimal places) Net Income After Tax roduction FAQ Welcome Chart of Accounts Transactions General Journal Tyno b