Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
I need help on 32,35,37, on the part that say wrong on financial statements, change in retaining earning, and balance sheet. 12 A B Number
I need help on 32,35,37, on the part that say wrong on financial statements, change in retaining earning, and balance sheet.
12 A B Number Name 2 1110 Cash 3 1120 Accounts Receivable 1130 Prepaid Insurance 5 1140 Prepaid Rent 6 1150 Office Supplies 7 1211 Office Equip. 8 1212 Accum. Depr.-Office Equip 1311 Computer Equip. 10 1312 Accum. Depr.-Computer Equip. 11 1411 Building Cost 1412 Accum. Depr.-Building 13 1510 Land 14 2101 Accounts Payable 15 2102 Advanced Payments 16 2103 Interest Payable 17 2105 Salaries Payable 18 2106 Income Taxes Payable 19 2201 Mortgage Payable 20 2202 Notes Payable 21 3100 Capital Stock 22 3200 Retained Eamings 23 3300 Dividends 24 3400 Income Summary 25 4100 Computer & Consulting Revenue 26 5010 Rent Expense 27 5020 Salary Expense 28 5030 Advertising Expense 29 5040 Repairs & Maint. Expense 30 5050 Oll & Gas Expense 5080 Supplies Expense 32 5090 Interest Expense 33 5100 Insurance Expense 34 5110 Depreciation Expense 35 5120 Income Tax Expense 36 C Normal Balance Debit Debit Debit Debit Debit Debit Credit Debit Credit Debit Credit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit 31 37 38 39 have a score of 1,2 One or more errors have been found in the following transaction(s) Transaction 32 One or more of the credit amounts are wrong 35 One or more of the debit amounts are wrong 37 The account numbers are incorrect One or more of the credit amounts are wrong FINANCIAL STATEMENTS Points per error 2 Income Statement Revenues: Computer Revenue 0 Expenses: Rent Expense WRONG 2 Salary Expense WRONG 2 FINANCIAL STATEMENTS Points per error Income Statement Revenues: 2 Computer Revenue 0 WRONG 2 WRONG 2 Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Oil & Gas Expense Supplies Expense Interest Expense WRONG 2 WRONG 2 WRONG 2 WRONG 2 WRONG 2 Insurance Expense 0 Depreciation Expense 0 Total WRONG 2 Net Income Before Tax Una Total WRONG 2 Net Income Before Tax 0 Income Tax Expense WRONG 2 WRONG 2 20 Net Income After Tax Total IncomeStatement Changes in Retained Earnings Balance Beginning of Period Net Income 0 WRONG 2 0 0 0 2 Dividends Balance, End of Period Total Changes in Retained Earnings Balance Sheet Assets Current Assets Cash 0 Accounts Receivable 0 Prepaid Insurance WRONG 2 Total Assets U 0 0 Liabilities 0 0 0 0 0 Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total WRONG 2 WRONG 2 WRONG 2 0 0 0 0 Long-Term Liabilities Mortgage Payable Notes Payable 0 Total WRONG 2 Total Liabilities WRONG 2 0 Long-Term Liabilities 0 0 Mortgage Payable Notes Payable 0 Total WRONG 2 Total Liabilities WRONG 2 0 0 Stockholder's Equity 0 0 - 0 Capital Stock Retained Earnings Total Total Liabilities and Stockholder's Equity Total Balance Sheet 0 WRONG 2 24 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Account Debit Credit 5,750.00 3 Name Description 1120 Accounts Receivable Being record of service rebenue 4100 Computer & Consulting Being record of service rebenue 31 31 Jun 30 Jun 30 5.750.00 3,464,07 32 32 32 32 Jun 30 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense Being record of depreciation 1212 Accum. Depr.-Office E Being record of depreciation 1312 Accum. Depr.-Compute Being record of depreciation 1412 Accum. Depr.-Building Being record of depreciation 17.27 3,214.00 232.80 546.00 33 33 Jun 30 Jun 30 5020 Salary Expense 2105 Salaries Payable Being record of salaries & wages Being record of salaries & wages 546.00 1 2 3 34 35 66 67 68 169 170 171 172 173 174 175 176 177 178 179 180 934.33 34 34 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable Being record of interest expenses Being record of interest expenses 934.33 35 35 Jun 30 Jun 30 2,465.69 5120 Income Tax Expense to close income tax payable 2106 Income Taxes Payable to close income tax payable 2,465.69 9 Transactions A General Journal Worksheet Income Statement Changes in Retained Earnings A Byte of Accounting, Inc. 2 General Journal 3 Note: You can only enter data into the yellow filled cells. Transaction Date Account Debit Credit 36 36 22,175.00 Name Description 4100 Computer & Consulting Closing revenus account 3400 Income Summary Closing revenus account Jun 30 Jun 30 22.175.00 14.777.92 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 37 37 37 37 37 37 37 37 37 37 37 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 expense account 5090 Interest Expense Closing expense account 1150 Office Supplies Closing expense account 5010 Rent Expense Closing expense account 5020 Salary Expense Closing expense account 5030 Advertising Expense Closing expense account 5040 Repairs & Maint. ExperClosing expense account 5050 Oil & Gas Expense Closing expense account 5100 Insurance Expense Closing expense account 5110 Depreciation Expense Closing expense account 5120 Income Tax Expense Closing expense account 3400 Income Summary Closing income summary account 3200 Retained Earings Closing income summary account 1,252.15 385.00 2,100.00 2,336.00 400.00 1,115.00 990.00 270.00 3,464.08 2,465.69 38 38 Jun 30 Jun 30 7,397.08 7.397.08 188 39 39 Jun 30 Jun 30 3200 Retained Earnings 3300 Dividends Closing dividend account Closing dividend account 1.723.68 723.68 Transactions General Journal Worksheet Income Statement Changes in Retained Earnings Dal A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Account Debit Credit 37 37 37 37 Jun 30 Jun 30 Jun 30 Jun 30 Name Description 5050 Oil & Gas Expense Closing expense account 5100 Insurance Expense Closing expense account 5110 Depreciation Expense Closing expense account 5120 Income Tax Expense Closing expense account 990.00 270.00 3,464.08 2,465.69 5 8 7 18 19 7,397.08 38 38 Jun 30 Jun 30 3400 Income Summary 3200 Retained Earings Closing income summary account Closing incomo summary account 7,397.08 86 88883 1,723.68 39 39 Jun 30 Jun 30 3200 Retained Eamings 3300 Dividends 03 04 205 206 Closing dividend account Closing dividend account 1,723.68 A Byte of Accounting, Inc. Income Statement For Month Ending June 30, 2021 Revenues Computer & Consulting Revenue $ 22,175.00 Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Oil & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Total Expenses $ 1,525.15 $ 385.00 $ 2,100.00 $ 2,336.00 $ 400.00 $ 1,115.00 $ 990.00 $ 270.00 $ 3,464.07 12,312.22 Net Income Before Tax $ 9,862.78 Income Tax Expense Round so we decimal place) 2,465.69 Net Income After Tax $ 7.397.08 A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 30, 2021 Total Balance, Beginning of Period Net Income 7,397.08 7,397.08 1.723.68 5,673.40 Dividends Balance, End of Period $ A Byte of Accounting, Inc. Balance Sheet As of June 30, 2021 3 4 5 6 7 Assets 9 10 11 12 13 14 15 16 17 18 Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total $ 52,520.32 $ 6,911.00 $ 2,100.00 6,210.00 $ 270.00 $ 68,011.32 20 21 Long-Term Assets Office Equip Accum. Depr.-Office Equip Computer Equip Accum. Depr.-Computer Equip. Building Cost Accum. Depr.-Building Land Total Total Assets $ 192,840.00 3,214.00 $ 189,626.00 $ 1,801.00 17.27 $ 1,783.73 $ 95,000.00 232.80 $ 94,767.20 18,000.00 23 24 26 $ 304,176.93 $ 372.188.24 Liabilities 27 28 29 30 31 32 33 34 35 36 37 38 39 40 11 Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Tota! A 696 $ 1,645.00 $ 1,252.15 $ 516.00 2,465.69 $ 101.700.00 $ 107,578.84 HY Liabilities Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total $ 1,645.00 $ 1,252.15 $ 516.00 $ 2,465.69 $ 101.700.00 $ 107,578.84 Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities $ 101,700.00 93,750.00 201,328.00 $ 201,328.84 Stockholder's Equity Capital Stock Retained Eamings Total Total Liabilities and Stockholder's Equity $ 165, 186.00 5,673.40 170,859.40 $ 372.188.24 n Description of transaction June 1: Byte of Accounting, Inc. acquired $50,600 in cash from Lauryn and issued 2,200 shares of its common stock. after 2. June 1: Byte of Accounting, Inc. issued 2,620 shares of its common stock to $25,760 in cash and computer equipment with a fair market value of $34,500 were received. 33. June 1: Byte of Accounting, Inc. issued 2,362 shares of its common stock after acquiring from Courtney $40,250 in cash, computer equipment with a fair market value of $13,340 and office equipment with a fair value of $736. 04. June 2: A down payment of $29,000 in cash was made on additional computer equipment that was purchased for $145,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $300 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 $22,250 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 $6,480 in cash. The effective date of the policy was June 16. 09. June 16: A check in the amount of $6,000 was received for consulting revenue. Traneanti B 0. June 16: Byte purchased a building and the land it is on for $113,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $18,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $11,300 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. June 17: Cash of $4,200 was paid for rent for June and July. Put the total amount into the Prepaid Rent 11. account. 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 $825 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 $1,115 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 $655 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 $6,225 to miscellaneous customers for services performed to June 25. 3 -6 37 22. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. Transactions General Journal Worksheet Income Statement Changes in Re Readive 23. June 29: Cash in the amount of $5,899 was received for billings. 0 24. June 29: Paid salaries of $910 to equipment operators for the week ending June 25. 51 52 53 54 25 June 30: Received a bill for the amount of $990 from O & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.24 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 physical inventory showed that only $270.00 worth of office supplies remained on hand as of June 30. 61 62 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. 63 64 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. 65 66 31. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $5,750 for the period of June 28-30. 32 67 68 69 70 74 72 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 Transactions General Journal Worksheet B calculated on the $116,000 for eight days. In addition, interest expense on the $93,750 balance of the loan (5116,000 less $22,250 = $93,750) must be calculated for the 20 days remaining in the month of June.) 35. 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.) 32 33 84 Closing Entries 85 86 36. Close the revenue accounts. 87 88 37. Close the expense accounts. 89 90 38. Close the income summary account 39. Close the dividends account. 91 92 93 94 95 96 97 32. 1 2 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 building's scrap value is $8,000. The office equipment has a scrap value of $500. The computer equipment has no scrap value. Calculate the depreciation for one month. 73 74 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. 75 76 34, 77 78 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 $116,000. On June 10, eight days later, $22,250 was repaid. Interest expense must be calculated on the $116,000 for eight days. In addition, interest expense on the $93,750 balance of the loan (5116,000 less $22,250 - $93,750) must be calculated for the 20 days remaining in the month of June.] 79 80 81 35 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.) , 82 83 84 Closing Entries 85 86 36. Close the revenue accounts. 87 88 37. Close the expense accounts
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d5d4f98e_85266960d5cccd5c.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d5def75d_85366960d5d926f3.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d5e8b42c_85466960d5e2d123.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d5f22cff_85466960d5eb4f10.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d5fb2a25_85566960d5f4d625.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d6049501_85566960d5fe4d61.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d610bb02_85666960d6076555.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d61cbfe4_85766960d6137f64.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d626dce2_85866960d62076be.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d630ce72_85866960d6294516.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d63ac05c_85966960d633f406.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d6471646_85966960d63e47f7.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d652c0e5_86066960d64ad076.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d65d8d6f_86166960d655ea73.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d66904da_86266960d660f8e9.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d674d05d_86266960d66bcf13.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d6814d76_86366960d679ae51.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66960d68d026b_86466960d6853443.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started