I only need help with figuring out the answer to question # 32-39
Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2.610 shares of its common stock to Jeremy after $28.080 in cash and computer equipment with a fair market value of $39,780 were received. 02. June 1: Byte of Accounting, Inc. issued 2,339 shares of its common stock after acquiring from Courtney $45,500 in cash, computer equipment with a fair market value of $14,560 and office equipment with a fair value of $754. 03. June 1: Byte of Accounting, Inc. acquired $93.600 in cash from SAVANNAH MURPHY and issued 3.600 shares of its common stock. 04. June 2: A down payment of $28.000 in cash was made on additional computer equipment that was purchased for $140,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $700 was purchased on credit from Discount Computer Corporation. 06. June 8: Unsatisfactory office equipment costing $140 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $21,500 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: Computer consultation revenue of $7,500 was received 10. June 16: Byte purchased a building and the land it is on for $95,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $15,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $9,500 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 11. June 17: Cash of $5,100 was paid for rent for June July and August. Put the total amount into the Prepaid Rent account 12. June 17: Received a bill of $475 from the local newspaper for advertising 13. June 21: Billed various miscellaneous local customers $4,900 for consulting services 14. June 21: A fax machine for the office was purchased for $875 cash. 15. June 21: Accounts payable in the amount of $560 were paid. 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,240 from Computer Parts and Repair Co. for repairs to the computer equipment. 18. June 22: Paid salaries of $1,010 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,925 was received on billings. 20. June 23: Purchased office supplies for $530 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed $5,595 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,300 was received for billings. 23. June 29: Paid the bill received on June 22. from Computer Parts and Repairs Co. 24. June 29: Paid salaries of $1,010 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $840 from 0 & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.18 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.] Adjusting Entries - Round to two decimal places. 27. The rent payment made on June 17 was for June, July and August. Expense the amount associated with one month's rent. 28. A physical inventory showed that only $214.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 7.75 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 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 insus 31. A review of Byte's job worksheets show that there are unbilled revenues in the amount lof $8.750 for the period of June 28-30. 33. A review of the payroll records show that unpaid salaries in the amount of $606 are owed by Byte for three days, June 28 - 30. 34. 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 LVLRUNII INUIC. ine 01121 IIULE VII e Computer eyupinell purcriaseu uil Jure |2 was $112,000. On June 10, eight days later, $21,500 was repaid. Interest expense must calculated on the $112,000 for eight days. In addition, interest expense on the 590,500 balance of the loan ($112,000 less $21.500 = $90.500) 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.] Closing Entries 36. Close the revenue accounts. 37. Close the expense accounts. 38. Close the income summary account. 39. Close the dividends account. Jun 30 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense depreciation expense 1412 Accum. Depr.-Building depreciation expense 1312 Accum. Depr.-Compu depreciation expense 1212 Accum. Depr.-Office depreciation expense 606.00 33 33 Jun 30 Jun 30 5020 Salary Expense 2105 Salaries Payable salaries accrued salaries accrued 606.001 34) 892.98 34 Jun 30 Jun 30 5090 Interest Expense 2101 Accounts Payable interest on notes payable interest on notes payable 892.98 35 35 Jun 30 Jun 30 5120 Income Tax Expense income tax 2 106 Income Taxes Payabl income tax 36 36 Jun 30 Jun 30 4100 Computer & Consultir revenue 3400 Income Summary revenue 37 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 3400 Income Summary closing entry 5010 Rent Expense closing entry 5020 Salary Expense closing entry 5030 Advertising Expense closing entry 5040 Repairs & Maint. Expeclosing entry 5050 Oil & Gas Expense closing entry 5080 Supplies Expense closing entry 5100 Insurance Expense closing entry 5110 Depreciation Expense closing entry 5120 Income Tax Expense closing entry 37 Jun 30 38 38] Jun 301 Jun 30 3400 Income Summary 3200 Retained Earnings Need a Description 39) 39 Jun 301 Jun 30 3200 Retained Earnings 3 300 Dividends Need a Description Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2.610 shares of its common stock to Jeremy after $28.080 in cash and computer equipment with a fair market value of $39,780 were received. 02. June 1: Byte of Accounting, Inc. issued 2,339 shares of its common stock after acquiring from Courtney $45,500 in cash, computer equipment with a fair market value of $14,560 and office equipment with a fair value of $754. 03. June 1: Byte of Accounting, Inc. acquired $93.600 in cash from SAVANNAH MURPHY and issued 3.600 shares of its common stock. 04. June 2: A down payment of $28.000 in cash was made on additional computer equipment that was purchased for $140,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $700 was purchased on credit from Discount Computer Corporation. 06. June 8: Unsatisfactory office equipment costing $140 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $21,500 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: Computer consultation revenue of $7,500 was received 10. June 16: Byte purchased a building and the land it is on for $95,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $15,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $9,500 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 11. June 17: Cash of $5,100 was paid for rent for June July and August. Put the total amount into the Prepaid Rent account 12. June 17: Received a bill of $475 from the local newspaper for advertising 13. June 21: Billed various miscellaneous local customers $4,900 for consulting services 14. June 21: A fax machine for the office was purchased for $875 cash. 15. June 21: Accounts payable in the amount of $560 were paid. 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,240 from Computer Parts and Repair Co. for repairs to the computer equipment. 18. June 22: Paid salaries of $1,010 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,925 was received on billings. 20. June 23: Purchased office supplies for $530 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed $5,595 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,300 was received for billings. 23. June 29: Paid the bill received on June 22. from Computer Parts and Repairs Co. 24. June 29: Paid salaries of $1,010 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $840 from 0 & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.18 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.] Adjusting Entries - Round to two decimal places. 27. The rent payment made on June 17 was for June, July and August. Expense the amount associated with one month's rent. 28. A physical inventory showed that only $214.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 7.75 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 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 insus 31. A review of Byte's job worksheets show that there are unbilled revenues in the amount lof $8.750 for the period of June 28-30. 33. A review of the payroll records show that unpaid salaries in the amount of $606 are owed by Byte for three days, June 28 - 30. 34. 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 LVLRUNII INUIC. ine 01121 IIULE VII e Computer eyupinell purcriaseu uil Jure |2 was $112,000. On June 10, eight days later, $21,500 was repaid. Interest expense must calculated on the $112,000 for eight days. In addition, interest expense on the 590,500 balance of the loan ($112,000 less $21.500 = $90.500) 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.] Closing Entries 36. Close the revenue accounts. 37. Close the expense accounts. 38. Close the income summary account. 39. Close the dividends account. Jun 30 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense depreciation expense 1412 Accum. Depr.-Building depreciation expense 1312 Accum. Depr.-Compu depreciation expense 1212 Accum. Depr.-Office depreciation expense 606.00 33 33 Jun 30 Jun 30 5020 Salary Expense 2105 Salaries Payable salaries accrued salaries accrued 606.001 34) 892.98 34 Jun 30 Jun 30 5090 Interest Expense 2101 Accounts Payable interest on notes payable interest on notes payable 892.98 35 35 Jun 30 Jun 30 5120 Income Tax Expense income tax 2 106 Income Taxes Payabl income tax 36 36 Jun 30 Jun 30 4100 Computer & Consultir revenue 3400 Income Summary revenue 37 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 3400 Income Summary closing entry 5010 Rent Expense closing entry 5020 Salary Expense closing entry 5030 Advertising Expense closing entry 5040 Repairs & Maint. Expeclosing entry 5050 Oil & Gas Expense closing entry 5080 Supplies Expense closing entry 5100 Insurance Expense closing entry 5110 Depreciation Expense closing entry 5120 Income Tax Expense closing entry 37 Jun 30 38 38] Jun 301 Jun 30 3400 Income Summary 3200 Retained Earnings Need a Description 39) 39 Jun 301 Jun 30 3200 Retained Earnings 3 300 Dividends Need a Description
