General Jounral Entry
31. A physical inventory showed that only $369.00 worth of general office supplies remained on hand as of June 30. This did not include any of the Super RoutePro. There were 5 units of Super RoutePro on hand. We use FIFO to determine the valuation of the supplies. I ne annual interest rate on the mortgage payable was 7.30 percent. Interest expense for one-nait month should be computed because the building and land were purchased and the liability incurred on 32. 33. Record a journal entry to reflect that one half month's insurance has expired. 34. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $19,000.00 for the period of June 28-30. The Building and the Office Equipment have the following estimated useful lives: Building - 31.5 years Office Equipment - 7.0 years 35. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building's salvage value is $7,000.00. The office equipment has a salvage value of $500.00. Calculate the depreciation for one month using the straight-line method of depreciation. The Computer Equipment has an estimated useful life of 5.00 years. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The computer equipment's scrap value is $20,000.00. Calculate the depreciation for one month using the double declining method of depreciation. 36. 37. A review of the payroll records show that unpaid salaries in the amount of $621.00 are owed by Byte for three days, June 28 - 30. Ignore payroll taxes. The note payable to Royce Computers (transactions 04 and 08) 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 $108,000.00. On June 10, eight days later, $20,750.00 was repaid. Interest expense must be calculated on the $108,000.00 for eight days. In addition, interest expense on the $87,250.00 balance of the loan ($108,000.00 less $20,750.00 = $87,250.00) must be calculated for the 20 days remaining in the month of June. 38. 39. Our CPA has informed us to estimate that 2.00% of Computer & Consulting Revenue will be uncollectable. 40. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to increases cash. 41. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to decreases cash. 42. 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.] 31. A physical inventory showed that only $369.00 worth of general office supplies remained on hand as of June 30. This did not include any of the Super RoutePro. There were 5 units of Super RoutePro on hand. We use FIFO to determine the valuation of the supplies. I ne annual interest rate on the mortgage payable was 7.30 percent. Interest expense for one-nait month should be computed because the building and land were purchased and the liability incurred on 32. 33. Record a journal entry to reflect that one half month's insurance has expired. 34. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $19,000.00 for the period of June 28-30. The Building and the Office Equipment have the following estimated useful lives: Building - 31.5 years Office Equipment - 7.0 years 35. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building's salvage value is $7,000.00. The office equipment has a salvage value of $500.00. Calculate the depreciation for one month using the straight-line method of depreciation. The Computer Equipment has an estimated useful life of 5.00 years. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The computer equipment's scrap value is $20,000.00. Calculate the depreciation for one month using the double declining method of depreciation. 36. 37. A review of the payroll records show that unpaid salaries in the amount of $621.00 are owed by Byte for three days, June 28 - 30. Ignore payroll taxes. The note payable to Royce Computers (transactions 04 and 08) 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 $108,000.00. On June 10, eight days later, $20,750.00 was repaid. Interest expense must be calculated on the $108,000.00 for eight days. In addition, interest expense on the $87,250.00 balance of the loan ($108,000.00 less $20,750.00 = $87,250.00) must be calculated for the 20 days remaining in the month of June. 38. 39. Our CPA has informed us to estimate that 2.00% of Computer & Consulting Revenue will be uncollectable. 40. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to increases cash. 41. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to decreases cash. 42. 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.]
