complete the following adjusting and closed entries based off of the transactions below:

June 30: 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 buildings scrap value is $7,000. The office equipment has a scrap value of $500. The computer equipment has no scrap value. Calculate the depreciation for one month.

June 30: A review of the payroll records show that unpaid salaries in the amount of $1,518.00 are owed to the employees of Byte for three days, June 28 - 30.

June 30: J. Collins, the Internal Auditor, indicated that $1,360.00 of the revenue recorded in June will not be earned until August.

June 30:

The note payable in transaction #5 and transaction #8 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 $128,000. On June 10, eight days later, $24,500 was repaid. Interest expense must be

calculated on the $128,000 for eight days. In addition, interest expense on the $103,500 balance of the loan ($128,000 less $24,500 = $103,500) must be calculated for the 20 days remaining in the month of June.]

June 30: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.

Close the income summary account.

Close the dividends account.

All Transactions:

June 1: An investor, made an investment in Byte by purchasing 2,550 shares of its common stock paying $24,960.00 in cash, and contributing to Byte computer equipment with a fair market value of $36,240.

June 1: Courtney, an investor, made an investment in Byte by purchasing 3,600 shares of its common stock paying $86,400.00 in cash.

June 1: Jeremy, an investor, made an investment in Byte by purchasing 2,191 shares of its common stock paying $37,200.00 in cash, and contributing to Byte computer equipment with a fair market value of $14,400 and office equipment with a fair value of $984.

June 2: Check # 6001 was issued to purchase a one-year insurance policy covering its computer equipment. The cost of the insurance is $6,480.00 and paid to Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387.

June 4: Check # 6002 for $32,000 was issued as a down payment for new computer equipment that cost $160,000 on invoice 827364 from Dell. A five-year note was executed by Byte for the balance.

June 8: Additional office equipment costing $4,300 was purchased on credit from Perez's Discount Computer Corporation, invoice number AB9865.

June 8: Defective office equipment costing $860 was returned to Perez's Discount Computer for credit to be applied against the outstanding balance owed by Byte.

June 14: Check # 6003 was issued for $24,500 as a partial payment on the balance owed to Dell related to the purchase of computer equipment, invoice 827364.

June 16: A check in the amount of $7,000 was received for services performed for Pitman Pictures.

June 16: Byte purchased a building and the land it is on for $107,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $17,000.00.

The balance of the cost is to be allocated to the building. Check # 6004 was used to make the down payment of $10,700.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance.

June 17: Received a bill for $1,290.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254.

June 17: Billed various miscellaneous local customers $4,100 for consulting services performed.

June 21: Check # 6005 was used to purchase a scanning machine for the office from Sicre's Office Machines Express for $725.00. The invoice number was 975-328.

June 21: Byte received invoice number 26354 in the amount of $475.00 from Fida Marketing Agency for advertising.

June 21: Check # 6006 for $9,200.00 was prepaid for rent of the office space for June, July, August and September. Put the total amount into the Prepaid Rent account.

June 22: Check # 6007 was used to pay salaries of $2,530.00 to equipment operators for the week ending June 18. Ignore payroll taxes.

June 22: Check # 6008 was used to pay invoice number 26354, the advertising bill that was previously received from Fida Digital Marketing Agency.

June 22: Accounts payable in the amount of $3,440.00 were paid with Check # 6009.

June 23: Purchased office supplies for $530.00 from Office Max on account. The invoice number was 65498.

June 23: Check # 6010 was used to pay invoice number 43254, the computer repair bill that was previously received from Computer Parts and Repair Co.

June 28: Billed various miscellaneous local customers $6,015 for consulting services performed.

June 29: Cash in the amount of $3,285 was received on billings.

June 29: Byte received $5,699.00 from customers billed when work was completed.

June 29: Paid a cash dividend of $0.22 per share to the three shareholders of Byte, using Check # 6011 - 6013. [IMPORTANT NOTE: The number of shares of capital stock outstanding can be determined from the first three transactions.]

June 30: Received a bill for the amount of $940.00 from O & G Oil and Gas Co. The invoice number was 784537.

June 30: Check # 6012 was used to pay salaries of $2,530.00 to equipment operators for the week ending June 25. Ignore payroll taxes.

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