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Building Blocks of Accounting .. A Financial Perspective to the same screen that the project was downloaded from: www.cybertext.com, The Book List, Building Blocks of Accounting .. A Financial Perspective, Enter password, Upload Your Excel have EG7803.xls eliza, when you are ready to File. your work graded you will upload this file Keep two copies of your spreadsheet in two separate places in case one does not work. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. F911 120628 or EG7803.xlsx, FAQ 01 When I try to enter information in the General Journal an error appears indicating that the cell protected. Answer: The computer program is designed to save you time. Instead of requirring you to enter the description four times the program automatically copies the description when you enter a new account number. This process requires that the data entry is limited to those cells which contain unique information. The cells that you can enter data into are the yellow filled cells. FAQ 02 I have entered all the transactions and have completed the worksheet however I get following message on the financial statements: "You must finish the worksheet before you can complete the ...." Answer: The worksheet demonstrates that the accounting system is working. If all of your journal entries are in balance then the Unadjusted Trial Balance and the Adjusting Entry columns will balance. The Adjusted Trial Balance columns net the Unadjusted Trial Balance and the Adjusting Entry columns. There are four steps to completing the worksheet: 1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the Balance Sheet columns, (debits remain debits and credits remain credits). 2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses. 3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet. 4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise there is an error in the completion of the worksheet. FAQ 03 In the feedback section, what does it mean when I have points under reverse? If you pay a telephone expense of $100.00 Telephone Expense Cash 100 100 If you debit cash and credit telephone expense you have reversed the whole entry. Cash Telephone Expense 100 100 If you debit cash and credit anything else you have reversed part of the entry. Cash Rent Expense 100 100 FAQ 04 How does my instructor get my grade? Everytime you upload your grade is recorded in a table. Your instructor can look at the table whenever they want to, although only the last grade counts. Keep a hard copy of your last upload for documentation. Building Blocks of Accounting -- A Financial Perspective The instructions start on row 22 of this page. FIRST eliza LAST gresh SS 7803 File EG7803 Welcome to the world's first ePractice case, an individualized, internet generated and graded case study that focuses on the analytically portion of the accounting cycle while automating the repetitive posting cycle. NOTE: If the program is not working e-mail markfriedman@miami.edu, 305.284.6296. Step I - The Chart of Accounts The chart of accounts includes all of the accounts that you can use to solve your case. You may want to print the chart of accounts and use it as an easy reference guide. Step II - Journalizing the Transactions. Using your unique transactions record the corresponding general journal entry, rounding to two decimal places. For example, 01 June 1: Hudson Bloom made a $40,000 cash investment in his business, Byte of Accounting. 01 Jun 01 C re di t Description D Name eb i t A cc ou nt at e D Tr an sa ct io n In the date field enter the date of the transaction. If you do not enter a date value an error message will appear. Accounts Payable 01 Jun 01 C re di t t Description eb i Name D A cc ou nt at e D Tr an sa ct io n In the account field enter the account number that corresponds to the account in the chart of accounts. You can also use the pull down list to find the appropriate account number. If you use a number that is not on the chart of accounts an error message will appear. 1110 Cash The name of the account will automatically appear in the name column. If it is the wrong account renter the correct account number. 01 Jun 01 C re di t t 1110 Cash Description eb i Name D A cc ou nt at e D Tr an sa ct io n Enter the description in the description field. Hudson's investment C re di t t Description eb i Name D A cc ou nt at e D Tr an sa ct io n Enter the amount in the debit field. Transaction # 1 Not in Balance by $40,000. 01 Jun 01 1110 Cash Hudson's investment 40,000.00 C re di t t Description eb i Name D A cc ou nt at e D Tr an sa ct io n Enter the second account number. Transaction # 1 Not in Balance by $40,000. 01 01 Jun 01 Jun 01 1110 Cash 3100 Capital Stock Hudson's investment 40,000.00 Hudson's investment 01 Jun 01 1110 Cash 3100 Capital Stock Hudson's investment Hudson's investment C re di t t Description eb i Name D A cc ou nt at e D Tr an sa ct io n Enter the amount in the credit field. 40,000.00 40,000.00 Step III - Worksheet Although not graded, you need to complete the Worksheet. If each of your journal entries are in balance then your Unadjusted Trial Balance, the Adjusting Entry and Adjusted Trial Balance columns will be in balance. 1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the Balance Sheet columns, (debits remain debits and credits remain credits). 2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses. 3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet. 4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise there is an error in the completion of the worksheet. Step IV - Prepare the Financial Statements. Press Here To Create After you have entered all of the transactions and prepared the Worksheet, youGeneral Ledger Income The are to prepare the Statement, Shareholder's Equity Statement and Balance Sheet using the forms provided. Step V - Prepare the Cosing Entries. Based upon the information from your Worksheet or from your Financial Statements, prepare the closing entries. Step VI - Upload the File. Whenever you want to have cybertext.com grade your work submit it to them on the bottom of the screen that you downloaded the file. Grading: You will be graded on the Journal Entries and the three financial statement. The case will be computer graded, therefore make sure all numbers are in the appropriate cells. The computer will evaluate your transactions when grading your financial statements. Note: Save and make backup copies regularly. Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3110 Paid-in Capital in Excess of Par Value 3200 Retained Earnings 3300 Dividends 3400 Income Summary 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5130 Bank Expense 5140 Telephone Expense 5150 Income Tax Expense Normal Balance Debit Debit Credit Debit Debit Debit Debit Credit Debit Credit Debit Credit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Error # 1 2 4 8 16 32 64 128 256 512 1024 Message Debit And Credit On Same Line Debit Before Credit Need An Account Number Round To Two Decimal Places Need a Description Need a Date Byte of Accounting eliza gresh 7943 Transaction Description of transaction June 1: Lauryn made an investment in Byte of Accounting, Inc. by purchasing 3,650 shares of its 01. common stock for $149,650 cash. The par value of the common stock was $27 per share. June 1: eliza gresh made an investment in Byte of Accounting, Inc., by purchasing 2,590 shares of its stock paying $45,510 in cash and by contributing computer equipment with a fair market value of $60,680. The par value of the common stock was $27 per share. 02. common June 1: Courtney made an investment in Byte of Accounting, Inc., by purchasing 569 shares of its stock by contributing computer equipment with a fair market value of $22,140 and office equipment with a fair value of $1,189. The par value of the common stock was $27 per share. 03. common June 2: Check # 5002 was used to make a down payment of $32,000.00 on additional computer Royce Computers, invoice number 76542. The full price of the computer was $160,000.00. A five-year note was executed by Byte for the balance. 04. equipment that was purchased from 05. June 4: Additional office equipment costing $400.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. 06. June 8: Unsatisfactory office equipment costing $80.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 8: Purchased office supplies for $1,850.00 from Staples on account. The invoice number was 61298. Included in the purchase was 10 units of Super RoutePro at a cost of $15.00 each. 08. June 10: Check # 5003 was used to make a $24,500.00 payment reducing the prinicpal owed on the June 2 purchase of computer equipment from Royce Computers. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer $5,472.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. 09. equipment for 10. June 16: Checks in the amount of $6,750.00 were received for services performed for cash customers. June 16: Byte purchased a building and the land it is on for $143,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $23,000.00. The the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $14,300.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance. 11. balance of 12. June 17: 13. June 17: Received invoice number 26354 in the amount of $475.00 from the local newspaper for advertising. 14. June 21: 15. Check # 5006 for $6,900.00 was paid for rent of the office space for June, July and August. Accounts payable in the amount of $320.00 were paid with Check # 5007. June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express for $650.00. The invoice number was 975-328. 16. June 21: Billed various miscellaneous local customers $4,100.00 for consulting services performed. 17. June 22: Check # 5009 was used to pay salaries of $810.00 to equipment operators for the week ending June 18. Ignore payroll taxes. 18. June 22: Received a bill for $1,190.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254. 19. June 22: 20. Check # 5010 was used to pay the advertising bill that was received on June 17. June 23: Purchased office supplies for $925.00 from Staples on account. The invoice number was 65498. Included in the purchase was 10 units of Super RoutePro at a cost of $25.00 each. 21. June 23: Cash in the amount of $3,285.00 was received on billings. 22. June 28: Billed $5,700.00 to miscellaneous customers for services performed to June 25. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011. 24. June 29: Cash in the amount of $5,400.00 was received for billings. 25. June 29: Check # 5012 was used to pay salaries of $810.00 to equipment operators for the week ending June 25. Ignore payroll taxes. 26. June 30: Received a bill for the amount of $965.00 from O & G Oil and Gas Co. The invoice number was 784537. 27. June 30: Check # 5013 was used to pay for a cash dividend of $0.19 per share to Lauryn, a shareholder of Byte. 28. June 30: Check # 5014 was used to pay for a cash dividend of $0.19 per share to eliza gresh a shareholder of Byte. 29. June 30: Check # 5015 was used to pay for a cash dividend of $0.19 per share to Courtney, a shareholder of Byte. Adjusting Entries - Round to two decimal places. 30. 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 $391.00 worth of general office supplies remained on hand as of 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. 31. June 32. 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. 33. Record 34. a journal entry to reflect that one half month's insurance has expired. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $18,750.00 for the period of June 28-30. The Building and the Office Equipment have the following estimated useful lives: Building - 31.5 years 35. Office Equipment - 7.0 years 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 $7,500.00. The office equipment has a salvage value of $450.00. 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 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. of 37. A review of the payroll records show that unpaid salaries in the amount of $486.00 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 38. $128,000.00. On June 10, eight days later, $24,500.00 was repaid. Interest expense must be calculated on the $128,000.00 for eight days. In addition, interest expense on the $103,500.00 balance of the loan ($128,000.00 less $24,500.00 = $103,500.00) must be calculated for the 20 days remaining in the month of June.] Our CPA has informed us to estimate that 1.00% of Computer & Consulting Revenue will be 39. uncollectable. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to 40. 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.] Closing Entries 43. Close the revenue accounts. 44. Close the expense accounts. 45. Close the income summary account. 46. Close the dividends account. A Byte of Accounting General Journal ce lB al an 01 01 01 Jun 01 Jun 01 Jun 01 1110 Cash sold stock for cash 3100 Capital Stock sold stock for cash 3110 Paid-in Capital in Excesssold stock for cash 02 02 02 02 Jun 01 Jun 01 Jun 01 Jun 01 1110 Cash 1311 Computer Equip. 3100 Capital Stock 3110 Paid-in Capital in Excess sold stock for equipment sold stock for equipment sold stock for equipment sold stock for equipment Jun 01 Jun 01 Jun 01 Jun 01 1311 Computer Equip. sold stock for equipment 1211 Office Equip. sold stock for equipment 3100 Capital Stock sold stock for equipment 3110 Paid-in Capital in Excesssold stock for equipment 22,140.00 1,189.00 04 04 04 Jun 02 Jun 02 Jun 02 1311 Computer Equip. 2202 Notes Payable 1110 Cash check #5002 invoice # 76542 check #5002 invoice # 76542 check #5002 invoice # 76542 05 05 Jun 04 Jun 04 1211 Office Equip. 2101 Accounts Payable invoice #98432 for comp. equip. invoice #98432 for comp. equip. 06 06 Jun 08 Jun 08 2101 Accounts Payable 1211 Office Equip. returned office equipment returned office equipment 07 07 Jun 08 Jun 08 1150 Office Supplies 2101 Accounts Payable purchased office equip. purchased office equip. 1,850.00 08 08 Jun 10 Jun 10 1110 Cash 2101 Accounts Payable paid supplies expense paid supplies expense 24,500.00 09 09 Jun 14 Jun 14 1130 Prepaid Insurance 5100 Insurance Expense purchased insurance purchased insurance 10 10 Jun 16 Jun 16 1110 Cash received payment for services 4100 Computer & Consulting received payment for services 11 11 11 11 Jun 16 Jun 16 Jun 16 Jun 16 1411 Building 1510 Land 2201 Mortgage Payable 1110 Cash purchased building purchased building purchased building purchased building 12 12 Jun 17 Jun 17 1140 Prepaid Rent 1110 Cash paid rent paid rent 13 13 Jun 17 Jun 17 5030 Advertising Expense 2101 Accounts Payable received invoice received invoice 475.00 14 14 Jun 21 Jun 21 2101 Accounts Payable 1110 Cash paid off accounts payable paid off accounts payable 320.00 15 15 Jun 21 Jun 21 1110 Cash 1150 Office Supplies purchased office supplies purchased office supplies 650.00 16 16 Jun 21 Jun 21 1120 Accounts Receivable charged customers 4100 Computer & Consulting charged customers 17 17 Jun 22 Jun 22 5020 Salary Expense 1110 Cash 18 18 Jun 22 Jun 22 5040 Repairs & Maint. Expens paid for computer repairs 2101 Accounts Payable paid for computer repairs 19 19 Jun 22 Jun 22 2101 Accounts Payable 1110 Cash paid advertising expense paid advertising expense 475.00 20 20 Jun 23 Jun 23 1150 Office Supplies 2101 Accounts Payable purchased office supplies purchased office supplies 925.00 21 21 Jun 23 Jun 23 1110 Cash 1120 Accounts Receivable cash received on billings cash received on billings 22 22 Jun 28 Jun 28 1120 Accounts Receivable billed customers 4100 Computer & Consulting billed customers 5,700.00 23 23 Jun 29 Jun 29 2101 Accounts Payable 1110 Cash paid bill for repairs paid bill for repairs 1,190.00 24 24 Jun 29 Jun 29 1110 Cash 1120 Accounts Receivable cash received from billings cash received from billings 5,400.00 25 25 Jun 29 Jun 29 5020 Salary Expense 1110 Cash paid salary expense paid salary expense 810.00 26 26 Jun 30 Jun 30 5050 Oil & Gas Expense 2101 Accounts Payable received bill received bill 965.00 27 27 Jun 30 Jun 30 3300 Dividends 1110 Cash paid dividends to lauren paid dividends to lauren 693.50 28 28 Jun 30 Jun 30 3300 Dividends 1110 Cash paid dividends to eliza paid dividends to eliza 492.10 29 29 Jun 30 Jun 30 3300 Dividends 1110 Cash paid dividende to courtney paid dividende to courtney 108.11 30 30 Jun 30 Jun 30 5010 Rent Expense 1140 Prepaid Rent adjusted for accum. Rent expense adjusted for accum. Rent expense 2,300.00 31 31 Jun 30 Jun 30 5080 Supplies Expense 1150 Office Supplies adjusted for used office supplies adjusted for used office supplies 1,984.00 32 32 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable interest on mortgage payable interest on mortgage payable 402.19 33 33 Jun 30 Jun 30 5100 Insurance Expense 1130 Prepaid Insurance record insurance expired record insurance expired 228.00 34 34 Jun 30 Jun 30 1120 Accounts Receivable unbilled services 4100 Computer & Consulting unbilled services 35 35 35 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense accum. Depreciation 1212 Accum. Depr.-Office Equiaccum. Depreciation 1412 Accum. Depr.-Building accum. Depreciation 36 36 Jun 30 Jun 30 5110 Depreciation Expense accumulated depreciation 1312 Accum. Depr.-Computer E accumulated depreciation 37 37 Jun 30 Jun 30 5020 Salary Expense 2105 Salaries Payable unpaid salary expense unpaid salary expense 486.00 38 38 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable interest on note payable to royce interest on note payable to royce 206.27 39 39 Jun 30 Jun 30 5120 Bad Debt Expense estimated uncollectibles 1121 Allowance for Doubtful A estimated uncollectibles 353.00 40 40 Jun 30 Jun 30 1110 Cash 1120 Accounts Receivable adjustments fro reconcilliation adjustments fro reconcilliation 500.00 41 41 41 Jun 30 Jun 30 Jun 30 5130 Bank Expense 5140 Telephone Expense 1110 Cash adjustment for reconcilliation adjustment for reconcilliation adjustment for reconcilliation 3,170.00 285.00 42 42 Jun 30 Jun 30 5150 Income Tax Expense 2106 Income Taxes Payable accrued income taxes accrued income taxes 4,402.89 43 43 Jun 30 Jun 30 4100 Computer & Consulting colsing 3400 Income Summary colsing 35,300.00 44 44 44 44 44 44 44 44 44 44 44 44 44 44 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 3400 Income Summary closing expenses 5010 Rent Expense closing expenses 5020 Salary Expense closing expenses 5030 Advertising Expense closing expenses 5040 Repairs & Maint. Expens closing expenses 5050 Oil & Gas Expense closing expenses 5080 Supplies Expense closing expenses 5090 Interest Expense closing expenses 5100 Insurance Expense closing expenses 5110 Depreciation Expense closing expenses 5120 Bad Debt Expense closing expenses 5130 Bank Expense closing expenses 5140 Telephone Expense closing expenses 5150 Income Tax Expense closing expenses To ta 45,510.00 60,680.00 03 03 03 03 C re di Description D Name eb it t ou nt A cc D at e Tr an sa ct io n Note: You can only enter data into the yellow filled cells. 22,091.35 paid salaries paid salaries 149,650.00 149650 (98550) (51100) 0 0 0 0 0 69,930.00 36,260.00 45510 60680 (69930) (36260) 0 0 0 0 15,363.00 7,966.00 22140 1189 (15363) (7966) 0 0 0 0 160000 (128000) (32000) 0 0 0 0 0 400 (400) 0 0 0 0 0 0 80 (80) 0 0 0 0 0 0 1850 (1850) 0 0 0 0 0 0 24500 (24500) 0 0 0 0 0 0 5472 (5472) 0 0 0 0 0 0 6750 (6750) 0 0 0 0 0 0 120000 23000 (128700) (14300) 0 0 0 0 6900 (6900) 0 0 0 0 0 0 475 (475) 0 0 0 0 0 0 320 (320) 0 0 0 0 0 0 650 (650) 0 0 0 0 0 0 4100 (4100) 0 0 0 0 0 0 810 (810) 0 0 0 0 0 0 1190 (1190) 0 0 0 0 0 0 475 (475) 0 0 0 0 0 0 925 (925) 0 0 0 0 0 0 3285 (3285) 0 0 0 0 0 0 5700 (5700) 0 0 0 0 0 0 1190 (1190) 0 0 0 0 0 0 5400 (5400) 0 0 0 0 0 0 810 (810) 0 0 0 0 0 0 965 (965) 0 0 0 0 0 0 694 (694) 0 0 0 0 0 0 492 (492) 0 0 0 0 0 0 108 (108) 0 0 0 0 0 0 2300 (2300) 0 0 0 0 0 0 1984 (1984) 0 0 0 0 0 0 402 (402) 0 0 0 0 0 0 228 (228) 0 0 0 0 0 0 18750 (18750) 0 0 0 0 0 0 310 (13) (298) 0 0 0 0 0 3714 (3714) 0 0 0 0 0 0 486 (486) 0 0 0 0 0 0 206 (206) 0 0 0 0 0 0 353 (353) 0 0 0 0 0 0 500 (500) 0 0 0 0 0 0 3170 285 (3455) 0 0 0 0 0 4403 (4403) 0 0 0 0 0 0 35300 (35300) 0 0 0 0 0 0 22091 (2300) (2106) (475) (1190) (965) (1984) (608) (228) (4024) (353) (3170) (285) (4403) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 98,550.00 51,100.00 160,000.00 128,000.00 32,000.00 400.00 400.00 80.00 80.00 1,850.00 24,500.00 5,472.00 5,472.00 6,750.00 6,750.00 120,000.00 23,000.00 128,700.00 14,300.00 6,900.00 6,900.00 475.00 320.00 650.00 4,100.00 4,100.00 810.00 810.00 1,190.00 1,190.00 475.00 925.00 3,285.00 3,285.00 5,700.00 1,190.00 5,400.00 810.00 965.00 693.50 492.10 108.11 2,300.00 1,984.00 402.19 228.00 18,750.00 18,750.00 310.23 12.61 297.62 3,713.77 3,713.77 486.00 206.27 353.00 500.00 3,455.00 4,402.89 35,300.00 2,300.00 2,106.00 475.00 1,190.00 965.00 1,984.00 608.46 228.00 4,024.00 353.00 3,170.00 285.00 4,402.89 45 0 0 0 0 0 0 0 0 46 0 0 0 0 0 0 0 0 (0) PublicBank Byte of Accounting 123 Speed Lane Miami, Florida 33999 P.O. Box 5551212, Miami, Florida 33999 Ph # (305) 555-1212 Previous Balance Deposits/Credits Checks/Debits Ending Balance Activity in date order Date Jun 01 1 Jun 07 4 Jun 15 8 Jun 16 10 Jun 21 11 Jun 22 Jun 22 Jun 22 12 Jun 23 21 Jun 24 Jun 26 14 Jun 26 15 Jun 27 17 Jun 27 Jun 27 19 Jun 29 205,115.00 59,300.00 145,815.00 145,815.00 Description Deposit Paid check # 5002 Paid check # 5003 Deposit Paid check # 5005 NSF NSF service charge Paid check # 5006 Deposit Paid check # 306 Paid check # 5007 Paid check # 5008 Paid check # 5009 Elec Remit AT&T Telephone Paid check # 5010 Service Charge- Checks Ending Balance Account Number Statement Date 33999999 6/30/200x Amount 195,160.00 -32,000.00 Complete JE 8 6,570.00 -14,300.00 -3,150.00 -20.00 -6,900.00 3,385.00 -1,000.00 -320.00 Complete JE 15 -810.00 -285.00 -475.00 -40.00 Balance 195,160.00 163,160.00 163,160.00 169,730.00 155,430.00 152,280.00 152,260.00 145,360.00 148,745.00 147,745.00 147,425.00 147,425.00 146,615.00 146,330.00 145,855.00 145,815.00 145,815.00 0 1 0 0 0 0 1 0 0 6750 6700 6000 700 50 6570 -3150 -20 0 100 -1000 0 0 0 285 0 40 2 Check # 306 is not our check Our policy is to charge the customer for any charges related to NSF checks The Deposit on Jun 16 was incorrectly recorded by the bank. The Deposit on Jun 23 was correctly recorded by the bank. We do not modify the original journal entry. Company's Books Ending Balance per books Additions deposit june 23 1. Add to Books 2. Add to Bank Bank Statement 177,646.29 Ending balance per bank Additions Total Total Deductions Deductions Ending Correct cash balance Ending Correct cash balance 3. Deduct from Books 4. Deduct from bank 145,815.00 A Byte of Accounting, Inc. Worksheet For Period Ending June 30, 2013 Account Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building Cost 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3110 Paid-in Capital in Excess of Par Valu 3200 Retained Earnings 3300 Dividends 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5130 Bank Expense 5140 Telephone Expense 5150 Income Taxes Expense Total NET INCOME Balance ` Unadjusted Trial Balance Debit Credit 177,646.29 0.00 1,115.00 0.00 0.00 0.00 5,472.00 0.00 6,900.00 0.00 2,125.00 0.00 1,509.00 0.00 0.00 0.00 242,820.00 0.00 0.00 0.00 120,000.00 0.00 0.00 0.00 23,000.00 0.00 0.00 28,240.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 128,700.00 0.00 128,000.00 0.00 183,843.00 0.00 95,326.00 0.00 0.00 1,293.71 0.00 0.00 0.00 0.00 16,550.00 0.00 0.00 1,620.00 0.00 475.00 0.00 1,190.00 0.00 965.00 0.00 0.00 0.00 0.00 0.00 0.00 5,472.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 586,131.00 586,131.00 Adjusting Entries Debit Credit 0.00 2,955.00 18,250.00 0.00 0.00 353.00 0.00 228.00 0.00 2,300.00 0.00 1,984.00 0.00 0.00 0.00 12.61 0.00 0.00 0.00 3,713.77 0.00 0.00 0.00 297.62 0.00 0.00 0.00 0.00 0.00 0.00 0.00 608.46 0.00 486.00 0.00 4,402.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18,750.00 2,300.00 0.00 486.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,984.00 0.00 608.46 0.00 228.00 0.00 4,024.00 0.00 353.00 0.00 3,170.00 0.00 285.00 0.00 4,402.89 0.00 Adjusted Trial Balance Debit Credit 174,691.29 0.00 19,365.00 0.00 0.00 353.00 5,244.00 0.00 4,600.00 0.00 141.00 0.00 1,509.00 0.00 0.00 12.61 242,820.00 0.00 0.00 3,713.77 120,000.00 0.00 0.00 297.62 23,000.00 0.00 0.00 28,240.00 0.00 0.00 0.00 608.46 0.00 486.00 0.00 4,402.89 0.00 128,700.00 0.00 128,000.00 0.00 183,843.00 0.00 95,326.00 0.00 0.00 1,293.71 0.00 0.00 0.00 0.00 35,300.00 2,300.00 0.00 2,106.00 0.00 475.00 0.00 1,190.00 0.00 965.00 0.00 1,984.00 0.00 608.46 0.00 0.00 5,244.00 4,024.00 0.00 353.00 0.00 3,170.00 0.00 285.00 0.00 4,402.89 0.00 Income Statement Debit Credit 36,091.35 614,527.35 22,091.35 13,208.65 35,300.00 36,091.35 614,527.35 Balance Sheet Debit Credit 1,776,426.29 19,865.00 177.40 5,244.00 4,600.00 141.00 1,509.00 12.61 242,820.00 3,713.77 120,000.00 297.62 23,000.00 28,240.00 608.46 486.00 4,402.89 128,700.00 12,800.00 183,843.00 95,326.00 1,293.71 35,300.00 2,300.00 2,106.00 475.00 1,190.00 965.00 1,984.00 608.46 228.00 4,024.00 353.00 3,170.00 285.00 4,402.89 35,300.00 2,194,899.00 35,300.00 2,194,899.00 458,607.75 13,208.65 2,194,899.00 1 1 0 A Byte of Accounting Income Statement For Month Ending June 30, 2013 You must finish the worksheet before you can complete the Income Statement, see FAQ 02. 4100 Revenues Computer Revenue Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Oil & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Bad Debt Expense Bank Expense 5110 Telephone Expense Total 5010 5020 5030 5040 5050 5080 5090 5100 5110 5120 $ 35,300.00 2,300.00 2,106.00 475.00 1,190.00 965.00 1,984.00 608.46 228.00 4,024.00 353.00 3,170.00 285.00 Net Income Before Tax Income Tax Expense (Round to two decimal places) Net Income After Tax $ 17,688.46 $ 17,611.54 4,402.89 Round to two places $ 13,208.65 1 1 0 A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 30, 2013 You must finish the worksheet before you can complete the Changes in Retained Earnings,see FAQ 02. Total Balance, Beginning of Period Net Income Dividends Balance, End of Period 1 d A Byte of Accounting Balance Sheet As of June 30, 2013 You must finish the worksheet before you can complete the Balance Sheet, see FAQ 02. Assets 1110 1120 1121 1130 1140 1150 1211 1212 Current Assets Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Prepaid Rent Office Supplies Total Long-Term Assets Office Equip. Accum. Depr.-Office Equip. 1311 1312 Computer Equip. Accum. Depr.-Computer Equip. 1411 1412 Building Cost Accum. Depr.-Building 1510 Land Total Total Assets Liabilities 2101 2102 2103 2105 2105 2201 2202 Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities Stockholder's Equity Paid-in Capital Capital Stock Paid-in Capital in Excess of Par Value Total Paid-in Capital Retained Earnings Total Sockholder's Equity Total Liabilities and Stockholder's Equity Building Blocks of Accounting .. A Financial Perspective to the same screen that the project was downloaded from: www.cybertext.com, The Book List, Building Blocks of Accounting .. A Financial Perspective, Enter password, Upload Your ready to Nathalie, when you areExcel File.have your work graded you will upload this fileNH2841.xls Keep two copies of your spreadsheet in two separate places in case one does not work. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. F911 150126 or NH2841.xlsx, Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ Page 1 FAQ 01 My file used to upload, why is it not uploading? Answer: Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version Somehow clean the files and they then upload without problem. If the problem continue simple send your file as an attachment with your username and password...friedman@cybertext.com Windows Operating System Select File Select Save As Select Save As Type: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xls file Save As Save As Type: Excel Workbook (*.xlsx) Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select MF1234.xlsx File Close File Open and open the .xls file Save As Format: Excel Workbook (*.xlsx) Save Excel 5.0/95 Workbook (.xls) Upload the file at cybertext.com Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Page 2 FAQ FAQ 02 When I try to enter information in the General Journal why does an error appears indicating that the cell protected? Answer: The computer program is designed to save you time. Instead of requiring you to enter the description four times the program automatically copies the description when you enter a new account number. This process requires that the data entry is limited to those cells which contain unique information. The cells that you can enter data into are the yellow filled cells. FAQ 03 In the feedback section, what does it mean when I have points under reverse? Answer: If you pay a telephone expense of $100.00 Telephone Expense 100 Cash 100 If you debit cash and credit telephone expense you have reversed the whole entry. Cash 100 Telephone Expense 100 If you debit cash and credit anything else you have reversed part of the entry. Cash 100 Rent Expense Elf Village Productions 100 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 04 How does my instructor get my grade? Answer: Every time you upload your grade is recorded in a table. Your instructor can look at the table whenever they want to, although only the last grade counts. Keep a hard copy of your last upload for documentation. FAQ 05 I have entered all the transactions and have completed the worksheet however I get following message on the financial statements: "You must finish the worksheet before you can complete the ...." Answer: The worksheet demonstrates that the accounting system is working. If all of your journal entries are in balance then the Unadjusted Trial Balance and the Adjusting Entry columns will balance. The Adjusted Trial Balance columns net the Unadjusted Trial Balance and the Adjusting Entry columns. There are four steps to completing the worksheet: 1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the Balance Sheet columns, (debits remain debits and credits remain credits). 2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses. 3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet. 4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise there is an error in the completion of the worksheet. Page 3 Building Blocks of Accounting -- A Financial Perspective The instructions start on row 22 of this page. FIRST Nathalie LAST Homsy SS 2841 File NH2841 Welcome to the world's first ePractice case, an individualized, internet generated and graded case study that focuses on the analytically portion of the accounting cycle while automating the repetitive posting cycle. NOTE: If the program is not working e-mail markfriedman@miami.edu, 305.284.6296. Step I - The Chart of Accounts The chart of accounts includes all of the accounts that you can use to solve your case. You may want to print the chart of accounts and use it as an easy reference guide. Step II - Journalizing the Transactions. Using your unique transactions record the corresponding general journal entry, rounding to two decimal places. For example, 01 June 1: Hudson Bloom made a $40,000 cash investment in his business, Byte of Accounting. 01 Jun 01 Description Cr ed it Name D eb it ou nt Ac c at e D Tr an sa ct io n In the date field enter the date of the transaction. If you do not enter a date value an error message will appear. Accounts Payable 01 Jun 01 Description Cr ed it Name D eb it ou nt Ac c at e D Tr an sa ct io n In the account field enter the account number that corresponds to the account in the chart of accounts. You can also use the pull down list to find the appropriate account number. If you use a number that is not on the chart of accounts an error message will appear. 1110 Cash The name of the account will automatically appear in the name column. If it is the wrong account renter the correct account number. 01 Jun 01 1110 Cash Description Cr ed it Name D eb it ou nt Ac c at e D Tr an sa ct io n Enter the description in the description field. Hudson's investment Description Cr ed it Name D eb it ou nt Ac c at e D Tr an sa ct io n Enter the amount in the debit field. Transaction # 1 Not in Balance by $40,000. 01 Jun 01 1110 Cash Hudson's investment 40,000.00 Description Cr ed it Name D eb it ou nt Ac c at e D Tr an sa ct io n Enter the second account number. Transaction # 1 Not in Balance by $40,000. 01 01 Jun 01 Jun 01 1110 Cash 3100 Capital Stock Hudson's investment 40,000.00 Hudson's investment 01 Jun 01 1110 Cash 3100 Capital Stock Description Hudson's investment Hudson's investment Cr ed it Name D eb it ou nt Ac c at e D Tr an sa ct io n Enter the amount in the credit field. 40,000.00 40,000.00 Step III - Worksheet Although not graded, you need to complete the Worksheet. If each of your journal entries are in balance then your Unadjusted Trial Balance, the Adjusting Entry and Adjusted Trial Balance columns will be in balance. 1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the Balance Sheet columns, (debits remain debits and credits remain credits). 2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses. 3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet. 4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise there is an error in the completion of the worksheet. Step IV - Prepare the Financial Statements. Press Here To Create After you have entered all of the transactions and prepared the Worksheet, youGeneral Ledger Income The are to prepare the Statement, Shareholder's Equity Statement and Balance Sheet using the forms provided. Step V - Prepare the Closing Entries. Based upon the information from your Worksheet or from your Financial Statements, prepare the closing entries. Step VI - Upload the File. Whenever you want to have cybertext.com grade your work submit it to them on the bottom of the screen that you downloaded the file. Grading: You will be graded on the Journal Entries and the three financial statement. The case will be computer graded, therefore make sure all numbers are in the appropriate cells. The computer will evaluate your transactions when grading your financial statements. Note: Save and make backup copies regularly. Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3110 Paid-in Capital in Excess of Par Value 3200 Retained Earnings 3300 Dividends 3400 Income Summary 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5130 Bank Expense 5140 Telephone Expense 5150 Income Tax Expense Normal Balance Debit Debit Credit Debit Debit Debit Debit Credit Debit Credit Debit Credit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Error # 1 2 4 8 16 32 64 128 256 512 1024 Message Debit And Credit On Same Line Debit Before Credit Need An Account Number Round To Two Decimal Places Need a Description Need a Date Byte of Accounting Nathalie Homsy 2991 Transaction Description of transaction June 1: Lauryn made an investment in Byte of Accounting, Inc. by purchasing 4,650 shares of its 01. common stock for $120,900 cash. The par value of the common stock was $22 per share. June 1: Nathalie Homsy made an investment in Byte of Accounting, Inc., by purchasing 2,620 shares of stock paying $28,860 in cash and by contributing computer equipment with a fair market value of $39,260. The par value of the common stock was $22 per share. 02. its common June 1: Courtney made an investment in Byte of Accounting, Inc., by purchasing 490 shares of its stock by contributing computer equipment with a fair market value of $11,440 and office equipment with a fair value of $1,300. The par value of the common stock was $22 per share. 03. common June 2: Check # 5002 was used to make a down payment of $27,000.00 on additional computer purchased from Royce Computers, invoice number 76542. The full price of the computer was $135,000.00. A five-year note was executed by Byte for the balance. 04. equipment that was 05. June 4: Additional office equipment costing $400.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. 06. June 8: Unsatisfactory office equipment costing $80.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 8: Purchased office supplies for $1,600.00 from Staples on account. The invoice number was 61298. Included in the purchase was 10 units of Super RoutePro at a cost of $30.00 each. 08. June 10: Check # 5003 was used to make a $20,750.00 payment reducing the prinicpal owed on the June 2 purchase of computer equipment from Royce Computers. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. 09. equipment for $5,136.00 from 10. June 16: Checks in the amount of $6,750.00 were received for services performed for cash customers. June 16: Byte purchased a building and the land it is on for $113,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $18,000.00. The of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $11,300.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance. 11. balance 12. June 17: Check # 5006 for$8,400.00 was paid for rent of the office space for June, July, August and September. 13. June 17: Received invoice number 26354 in the amount of $300.00 from the local newspaper for advertising. 14. June 15. 21: Accounts payable in the amount of $320.00 were paid with Check # 5007. June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express for $850.00. The invoice number was 975-328. 16. June 21: Billed various miscellaneous local customers $4,400.00 for consulting services performed. 17. June 22: Check # 5009 was used to pay salaries of $810.00 to equipment operators for the week ending June 18. Ignore payroll taxes. 18. June 22: Received a bill for $1,315.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254. 19. June 20. 22: Check # 5010 was used to pay the advertising bill that was received on June 17. June 23: Purchased office supplies for $800.00 from Staples on account. The invoice number was 65498. Included in the purchase was 10 units of Super RoutePro at a cost of $40.00 each. 21. June 23: Cash in the amount of $3,525.00 was received on billings. 22. June 28: Billed $5,490.00 to miscellaneous customers for services performed to June 25. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011. 24. June 29: Cash in the amount of $5,201.00 was received for billings. 25. June 29: Check # 5012 was used to pay salaries of $810.00 to equipment operators for the week ending June 25. Ignore payroll taxes. 26. June 30: Received a bill for the amount of $865.00 from O & G Oil and Gas Co. The invoice number was 784537. 27. June 30: Check # 5013 was used to pay for a cash dividend of $0.17 per share to Lauryn, a shareholder of Byte. 28. June 30: Check # 5014 was used to pay for a cash dividend of $0.17 per share to Nathalie Homsy a shareholder of Byte. 29. June 30: Check # 5015 was used to pay for a cash dividend of $0.17 per share to Courtney, a shareholder of Byte. Adjusting Entries - Round to two decimal places. 30. The rent payment made on June 17 was for June, July, August and September. Expense the amount associated with one month's rent. A physical inventory showed that only $335.00 worth of general office supplies remained on hand as of 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. 31. June 32. The annual interest rate on the mortgage payable was 8.25 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 33. Record a journal entry to reflect that one half month's insurance has expired. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $15,000.00 for 34. the period of June 28-30. The Building and the Office Equipment have the following estimated useful lives: Building - 31.5 years 35. Office Equipment - 7.0 years 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 $7,500.00. The office equipment has a salvage value of $350.00. 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 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. of 37. A review of the payroll records show that unpaid salaries in the amount of $486.00 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. 38. [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.] 39. Our CPA has informed us to estimate that 3.00% 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.] Closing Entries 43. Close the revenue accounts. 44. Close the expense accounts. 45. Close the income summary account. 46. Close the dividends account. A Byte of Accounting General Journal an al B To t Description C re di t Name D eb it al ou nt A cc D at e Tr an sa ct io n ce Note: You can only enter data into the yellow filled cells. 01 01 01 Jun 01 Jun 01 Jun 01 1110 Cash Lauryn's investment 3100 Capital Stock Lauryn's investment 3110 Paid-in Capital in ExcessLauryn's investment 120,900.00 120900 (102300) (18600) 0 0 0 0 0 02 02 02 02 Jun 01 Jun 01 Jun 01 Jun 01 1110 Cash Nathalie's investment 1311 Computer Equip. Nathalie's investment 3100 Capital Stock Nathalie's investment 3110 Paid-in Capital in ExcessNathalie's investment 28,860.00 39,260.00 57,640.00 10,480.00 28860 39260 (57640) (10480) 0 0 0 0 03 03 03 03 Jun 01 Jun 01 Jun 01 Jun 01 1311 Computer Equip. Courtney's investment 1211 Office Equip. Courtney's investment 3100 Capital Stock Courtney's investment 3110 Paid-in Capital in ExcessCourtney's investment 11,440.00 1,300.00 10,780.00 1,960.00 11440 1300 (10780) (1960) 0 0 0 0 04 04 04 Jun 02 Jun 02 Jun 02 1311 Computer Equip. 1110 Cash 2202 Notes Payable Computer on note Invoice # 76542 Computer on note Invoice # 76542 Computer on note Invoice # 76542 135000 (27000) (108000) 0 0 0 0 0 05 05 Jun 04 Jun 04 1211 Office Equip. 2101 Accounts Payable Office Purchase Invoice # 98432 Office Purchase Invoice # 98432 400 (400) 0 0 0 0 0 0 06 06 Jun 08 Jun 08 2101 Accounts Payable 1211 Office Equip. Return on invoice # 98432 Return on invoice # 98432 80 (80) 0 0 0 0 0 0 07 07 Jun 08 Jun 08 1150 Office Supplies 2101 Accounts Payable Staples Purchase invoice # 61298 Staples Purchase invoice # 61298 1600 (1600) 0 0 0 0 0 0 08 08 Jun 10 Jun 10 2202 Notes Payable 1110 Cash Payment on Invoice # 76542 Payment on Invoice # 76542 20750 (20750) 0 0 0 0 0 0 09 09 Jun 14 Jun 14 1130 Prepaid Insurance 1110 Cash Seth Insurance Invoice # 2387 Seth Insurance Invoice # 2387 5136 (5136) 0 0 0 0 0 0 10 10 Jun 16 Jun 16 1110 Cash Service Provided 4100 Computer & Consulting Service Provided 6750 (6750) 0 0 0 0 0 0 11 11 11 11 Jun 16 Jun 16 Jun 16 Jun 16 1411 Building 1510 Land 1110 Cash 2201 Mortgage Payable Land Land Land Land 95000 18000 (11300) (101700) 0 0 0 0 12 12 Jun 17 Jun 17 1140 Prepaid Rent 1110 Cash Office rent June, July , August & Se 8,400.00 Office rent June, July , August & September 8400 (8400) 0 0 0 0 0 0 13 13 Jun 17 Jun 17 5030 Advertising Expense 2101 Accounts Payable Invoice For Advertisement # 26354 Invoice For Advertisement # 26354 300.00 300 (300) 0 0 0 0 0 0 14 14 Jun 21 Jun 21 2101 Accounts Payable 1110 Cash Payment on Account payable Payment on Account payable 320.00 320 (320) 0 0 0 0 0 0 15 15 Jun 21 Jun 21 1211 Office Equip. 1110 Cash Purchase # 975-328 Purchase # 975-328 850.00 850 (850) 0 0 0 0 0 0 16 16 Jun 21 Jun 21 1120 Accounts Receivable Consultant Services Billed 4100 Computer & Consulting Consultant Services Billed 4400 (4400) 0 0 0 0 0 0 17 17 Jun 22 Jun 22 5020 Salary Expense 1110 Cash 810 (810) 0 0 0 0 0 0 18 18 Jun 22 Jun 22 5040 Repairs & Maint. ExpensInvoice # 43254 2101 Accounts Payable Invoice # 43254 1315 (1315) 0 0 0 0 0 0 19 19 Jun 22 Jun 22 2101 Accounts Payable 1110 Cash Advertising invoice paid Advertising invoice paid 300.00 300 (300) 0 0 0 0 0 0 20 20 Jun 23 Jun 23 1150 Office Supplies 2101 Accounts Payable Purchase invoie # 65498 Purchase invoie # 65498 800.00 800 (800) 0 0 0 0 0 0 21 21 Jun 23 Jun 23 1110 Cash 1120 Accounts Receivable cash received cash received 3525 (3525) 0 0 0 0 0 0 22 22 Jun 28 Jun 28 1120 Accounts Receivable Billed customers for services 4100 Computer & Consulting Billed customers for services 5,490.00 5490 (5490) 0 0 0 0 0 0 23 23 Jun 29 Jun 29 2101 Accounts Payable 1110 Cash expense invoice paid expense invoice paid 1,315.00 1315 (1315) 0 0 0 0 0 0 24 24 Jun 29 Jun 29 1110 Cash 1120 Accounts Receivable Cash received from previous service Cash received from previous services 5,201.00 5201 (5201) 0 0 0 0 0 0 25 25 Jun 29 Jun 29 5020 Salary Expense 1110 Cash Salary Expense Salary Expense 810.00 810 (810) 0 0 0 0 0 0 26 26 Jun 30 Jun 30 5050 Oil & Gas Expense 2101 Accounts Payable Gas Invoice Expense Gas Invoice Expense 865.00 865 (865) 0 0 0 0 0 0 27 27 Jun 30 Jun 30 3300 Dividends 1110 Cash Lauryn Dividends 4650 shares per 0. 790.50 Lauryn Dividends 4650 shares per 0.17 per share 790.50 791 (791) 0 0 0 0 0 0 28 28 Jun 30 Jun 30 3300 Dividends 1110 Cash Nathalie Homsy 2620share 0,17 per 445.40 Nathalie Homsy 2620share 0,17 per share 445.40 445 (445) 0 0 0 0 0 0 29 29 Jun 30 Jun 30 3300 Dividends 1110 Cash Courtney Dividends 490 shares 0.17 83.30 Courtney Dividends 490 shares 0.17 per share 83.30 83 (83) 0 0 0 0 0 0 30 30 Jun 30 Jun 30 5010 Rent Expense 1140 Prepaid Rent Oone month expensing rent Oone month expensing rent 2,100.00 2100 (2100) 0 0 0 0 0 0 31 31 Jun 30 Jun 30 5080 Supplies Expense 1150 Office Supplies adjusted to office supplies adjusted to office supplies 1,865.00 1865 (1865) 0 0 0 0 0 0 32 32 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable accumulated interest on interst expe accumulated interest on interst expense 349.59 350 (350) 0 0 0 0 0 0 33 33 Jun 30 Jun 30 5100 Insurance Expense 1130 Prepaid Insurance Half month insurance Half month insurance 214.00 214 (214) 0 0 0 0 0 0 34 34 Jun 30 Jun 30 1120 Accounts Receivable billing services 4100 Computer & Consulting billing services 15000 (15000) 0 0 0 0 0 0 35 35 35 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense ADJ. for Accumulated Derpeciation 1212 Accum. Depr.-Office EquiADJ. for Accumulated Derpeciation 1412 Accum. Depr.-Building ADJ. for Accumulated Derpeciation 256.72 257 (25) (231) 0 0 0 0 0 36 36 Jun 30 Jun 30 5110 Depreciation Expense ADJ. for Accumulated Derpeciation 1312 Accum. Depr.-Computer E ADJ. for Accumulated Derpeciation 6,190.00 6190 (6190) 0 0 0 0 0 0 37 37 Jun 30 Jun 30 5020 Salary Expense 2105 Salaries Payable To record Unpaid Salary To record Unpaid Salary 486.00 486 (486) 0 0 0 0 0 0 38 38 Jun 30 Jun 30 5090 Interest Expense 2105 Salaries Payable Interest on note to Royce Interest on note to Royce 869.66 870 (870) 0 0 0 0 0 0 39 39 Jun 30 Jun 30 5120 Bad Debt Expense estimated uncollectible 1121 Allowance for Doubtful A estimated uncollectible 949.20 949 (949) 0 0 0 0 0 0 40 40 Jun 30 Jun 30 1110 Cash 1120 Accounts Receivable Adj reconciliation Adj reconciliation 100.00 100 (100) 0 0 0 0 0 0 41 41 41 Jun 30 Jun 30 Jun 30 5130 Bank Expense 5140 Telephone Expense 1110 Cash Adj reconciliation Adj reconciliation Adj reconciliation 2,990.00 285.00 2990 285 (3275) 0 0 0 0 0 42 42 Jun 30 Jun 30 5150 Income Tax Expense 2106 Income Taxes Payable Acrued Income taxes Acrued Income taxes 2,746.21 2746 (2746) 0 0 0 0 0 0 43 43 Jun 30 Jun 30 4100 Computer & Consulting closing entry 3400 Income Summary closing entry 31,640.00 31640 (31640) 0 0 0 0 0 0 44 44 44 44 44 44 44 44 44 44 44 44 44 44 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 3400 Income Summary Closing 5010 Rent Expense Closing 5020 Salary Expense Closing 5030 Advertising Expense Closing 5040 Repairs & Maint. ExpensClosing 5050 Oil & Gas Expense Closing 5080 Supplies Expense Closing 5090 Interest Expense Closing 5100 Insurance Expense Closing 5110 Depreciation Expense Closing 5120 Bad Debt Expense Closing 5130 Bank Expense Closing 5140 Telephone Expense Closing 5150 Income Tax Expense Closing Entry Entry Entry Entry Entry Entry Entry Entry Entry Entry Entry Entry Entry Entry 23,401.38 23401 (2100) (2106) (300) (1315) (865) (1865) (1219) (214) (6447) (949) (2990) (285) (2746) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 45 45 Jun 30 Jun 30 3400 Income Summary 3200 Retained Earnings closing entry closing entry 8,238.62 8239 (8239) 0 0 0 0 0 0 46 46 Jun 30 Jun 30 3200 Retained Earnings 3300 Dividends closing entry closing entry 1,319.20 1319 (1319) 0 0 0 0 0 0 102,300.00 18,600.00 135,000.00 27,000.00 108,000.00 400.00 400.00 80.00 80.00 1,600.00 1,600.00 20,750.00 20,750.00 5,136.00 5,136.00 6,750.00 6,750.00 Purchase Purchase Purchase Purchase 95,000.00 18,000.00 11,300.00 101,700.00 8,400.00 300.00 320.00 850.00 4,400.00 4,400.00 Salaries paid Salaries paid 810.00 810.00 1,315.00 1,315.00 300.00 800.00 3,525.00 3,525.00 5,490.00 1,315.00 5,201.00 810.00 865.00 2,100.00 1,865.00 349.59 214.00 15,000.00 15,000.00 25.24 231.48 6,190.00 486.00 869.66 949.20 100.00 3,275.00 2,746.21 31,640.00 2,100.00 2,106.00 300.00 1,315.00 865.00 1,865.00 1,219.25 214.00 6,446.72 949.20 2,990.00 285.00 2,746.21 8,238.62 1,319.20 0 PublicBank Byte of Accounting 123 Speed Lane Miami, Florida 33999 P.O. Box 5551212, Miami, Florida 33999 Ph # (305) 555-1212 Previous Balance Deposits/Credits Checks/Debits Ending Balance Activity in date order Date Jun 01 1 Jun 07 4 Jun 15 8 Jun 16 10 Jun 21 11 Jun 22 Jun 22 Jun 22 12 Jun 23 21 Jun 24 Jun 26 14 Jun 26 15 Jun 27 17 Jun 27 Jun 27 19 Jun 29 159,955.00 74,305.00 85,650.00 85,650.00 Account Number Statement Date Description Deposit Paid check # 5002 Paid check # 5003 Deposit Paid check # 5005 NSF NSF service charge Paid check # 5006 Deposit Paid check # 306 Paid check # 5007 Paid check # 5008 Paid check # 5009 Elec Remit AT&T Telephone Paid check # 5010 Service Charge- Checks Ending Balance 33999999 6/30/200x Amount 149,760.00 -27,000.00 -20,750.00 6,570.00 -11,300.00 -2,900.00 -25.00 -8,400.00 3,625.00 -1,300.00 -320.00 -850.00 -810.00 -285.00 -300.00 -65.00 Balance 149,760.00 122,760.00 102,010.00 108,580.00 97,280.00 94,380.00 94,355.00 85,955.00 89,580.00 88,280.00 87,960.00 87,110.00 86,300.00 86,015.00 85,715.00 85,650.00 85,650.00 0 0 0 0 0 0 0 0 0 6750 6700 6000 700 50 6570 -2900 -25 0 100 -1300 0 0 0 285 0 65 0 Check # 306 is not our check Our policy is to charge the customer for any charges related to NSF checks The Deposit on Jun 16 was incorrectly recorded by the bank. The Deposit on Jun 23 was correctly recorded by the bank. We do not modify the original journal entry. Company's Books Ending Balance per books Bank Statement 86,925.80 1. Add to Books 2. Add to Bank 100.00 Total 85,650.00 Additions UNCORRECT DEPOSIT BY BANK NOT OUR CHECK CASH RECEIVED ON JUNE 29 180.00 1,300.00 5,201.00 Total Additions deposit june 23 Ending balance per bank 6,681.00 100.00 Deductions NSF NSF SERVICE CHARGE TELEPHONE EXPENSE SERVICE CHARGE -CHECK Deductions 2,900.00 25.00 285.00 65.00 Check # 5004 Check # 5011 Check # 5012 check # 5013 Check # 5014 Check # 5015 5,136.00 1,315.00 810.00 790.50 83.30 445.40 3,275.00 3. Deduct from Books 4. Deduct from bank 8,580.20 Ending Correct cash balance 83,750.80 Ending Correct cash balance 83,750.80 A Byte of Accounting, Inc. Worksheet For Period Ending June 30, 2015 Account Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building Cost 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3110 Paid-in Capital in Excess of Par Valu 3200 Retained Earnings 3300 Dividends 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5130 Bank Expense 5140 Telephone Expense 5150 Income Taxes Expense Total NET INCOME Balance ` Unadjusted Trial Balance Debit Credit 86,925.80 0.00 1,164.00 0.00 0.00 0.00 5,136.00 0.00 8,400.00 0.00 2,400.00 0.00 2,470.00 0.00 0.00 0.00 185,700.00 0.00 0.00 0.00 95,000.00 0.00 0.00 0.00 18,000.00 0.00 0.00 3,265.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 101,700.00 0.00 87,250.00 0.00 170,720.00 0.00 31,040.00 0.00 0.00 1,319.20 0.00 0.00 0.00 0.00 16,640.00 0.00 0.00 1,620.00 0.00 300.00 0.00 1,315.00 0.00 865.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 410,615.00 410,615.00 Adjusting Entries Debit Credit 0.00 3,175.00 14,900.00 0.00 0.00 949.20 0.00 214.00 0.00 2,100.00 0.00 1,865.00 0.00 0.00 0.00 25.24 0.00 0.00 0.00 6,190.00 0.00 0.00 0.00 231.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 349.59 0.00 1,355.66 0.00 2,746.21 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15,000.00 2,100.00 0.00 486.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,865.00 0.00 1,219.25 0.00 214.00 0.00 6,446.72 0.00 949.20 0.00 2,990.00 0.00 285.00 0.00 2,746.21 0.00 Adjusted Trial Balance Debit Credit 83,750.80 0.00 16,064.00 0.00 0.00 949.20 4,922.00 0.00 6,300.00 0.00 535.00 0.00 2,470.00 0.00 0.00 25.24 185,700.00 0.00 0.00 6,190.00 95,000.00 0.00 0.00 231.48 18,000.00 0.00 0.00 3,265.00 0.00 0.00 0.00 349.59 0.00 1,355.66 0.00 2,746.21 0.00 101,700.00 0.00 87,250.00 0.00 170,720.00 0.00 31,040.00 0.00 0.00 1,319.20 0.00 0.00 0.00 0.00 31,640.00 2,100.00 0.00 2,106.00 0.00 300.00 0.00 1,315.00 0.00 865.00 0.00 1,865.00 0.00 1,219.25 0.00 214.00 0.00 6,446.72 0.00 949.20 0.00 2,990.00 0.00 285.00 0.00 2,746.21 0.00 Income Statement Debit Credit 34,201.38 437,462.38 23,401.38 8,238.62 31,640.00 34,201.38 437,462.38 Balance Sheet Debit Credit 83,750.80 16,064.00 949.20 4,922.00 6,300.00 535.00 2,470.00 25.24 185,700.00 6,190.00 95,000.00 231.48 18,000.00 3,265.00 349.59 1,355.66 2,746.21 101,700.00 87,250.00 170,720.00 31,040.00 1,319.20 31,640.00 2,100.00 2,106.00 300.00 1,315.00 865.00 1,865.00 1,219.25 214.00 6,446.72 949.20 2,990.00 285.00 2,746.21 31,640.00 31,640.00 414,061.00 405,822.38 8,238.62 1 1 0 A Byte of Accounting Income Statement For Month Ending June 30, 2015 You must finish the worksheet before you can complete the Income Statement, see FAQ 02. 4100 Revenues Computer Revenue Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Oil & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Bad Debt Expense Bank Expense 5110 Telephone Expense Total 5010 5020 5030 5040 5050 5080 5090 5100 5110 5120 $ 31,640.00 $ $ $ $ $ $ $ $ $ $ $ $ 2,100.00 2,106.00 300.00 1,315.00 865.00 1,865.00 1,219.25 214.00 6,446.72 949.20 2,990.00 285.00 Net Income Before Tax $ 20,655.17 $ 10,984.83 Income Tax Expense (Round to two decimal places) Net Income After Tax 2,746.21 Round to two places $ 8,238.62 1 1 0 A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 30, 2015 You must finish the worksheet before you can complete the Changes in Retained Earnings,see FAQ 02. Total Balance, Beginning of Period Net Income $ $ Dividends Balance, End of Period $ 8,238.62 8,238.62 1,319.20 6,919.42 1 d A Byte of Accounting Balance Sheet As of June 30, 2015 You must finish the worksheet before you can complete the Balance Sheet, see FAQ 02. Assets 1110 1120 1121 1130 1140 1150 1211 1212 Current Assets Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Prepaid Rent Office Supplies Total Long-Term Assets Office Equip. Accum. Depr.-Office Equip. $ 16,064.00 949.20 $ 2,470.00 25.24 $ 83,750.80 15,114.80 4,922.00 6,300.00 535.00 $ 110,622.60 2,444.76 1311 1312 Computer Equip. Accum. Depr.-Computer Equip. $ 185,700.00 6,190.00 $ 179,510.00 1411 1412 Building Cost Accum. Depr.-Building $ 95,000.00 231.48 $ 94,768.52 1510 Land Total Total Assets 18,000.00 $ 294,723.28 $ 405,345.88 Liabilities 2101 2102 2103 2105 2105 2201 2202 Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities $ $ $ $ $ 3,265.00 349.59 1,355.66 2,746.21 $ 7,716.46 $ 101,700.00 $ 87,250.00 188,950.00 $ 196,666.46 Stockholder's Equity Paid-in Capital Capital Stock Paid-in Capital in Excess of Par Value Total Paid-in Capital R