Question
I need help finding the depreciation.I can not find the cost of computer equipment and office eqipment. 32. The fixed assets have estimated useful lives
I need help finding the depreciation.I can not find the cost of computer equipment and office eqipment.
32. The fixed assets have estimated useful lives as follows:
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 office equipment has a scrap value of $500.The computer equipment has no scrap value.Calculate the depreciation for one month.
These are the transactions
01 June 1:Byte of Accounting, Inc. acquired $70,000 in cash from Lauryn and issued 2,800 shares of its common stock.
02.June 1:Byte of Accounting, Inc. issued 2,570 shares of its common stock after $26,250 in cash and computer equipment with a fair market value of $38,000 were received
03.June 1:Byte of Accounting, Inc. issued 1,877 shares of its common stock after acquiringfrom Courtney $31,250 in cash, computer equipment with a fair market value of $14,500 and office equipment with a fair value of $1,175.
04.June 2:A down payment of $34,000 in cash was made on additional computer equipment that was purchased for $170,000.A five-year note was executed by Byte for the balance.
05.June 4:Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation.
06.June 8:Unsatisfactory office equipment costing $100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte.
07.June 10:Byte paid $26,000 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 $6,480 in cash.The effective date of the policy was June 16.
09.June 16:A check in the amount of$8,250 was received for consulting revenue.
10.June 16:Byte purchased a building and the land it is on for $107,000, to house its repair facilities and to store computer equipment.The lot on which the building is located is valued at $17,000. The balance of the cost is to be allocated to the building.Byte made a cash down payment of $10,700and 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 $325 from the local newspaper for advertising.
13.June 21:Accounts payable in the amount of $400 were paid.
14.June 21:A fax machine for the office was purchased for $700 cash.
15.June 21: Billed various miscellaneous local customers $4,100 for consulting services performed.
16.June 22:Paid salaries of $960 to equipment operators for the week ending June 18.
17.June 22:Received a bill for $1,290 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 $705 on credit.Record the purchase as an increase to the assets.
20.June 23:Cash in the amount of $3,285 was received on billings.
21.June 28:Billed $5,910 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.
23.June 29:Cash in the amount of $5,600 was received for billings.
24.June 29:Paid salaries of $960 to equipment operators for the week ending June 25.
25.June 30:Received a bill for the amount of $915 from O & G Oil and Gas Co.
26.June 30:Paid a cash dividend of $0.21 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.]
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