Journal Entries for 31 46 D K ) Insert Page Layout Formulas Data Review View cut A A 5 Wrap Text 9 Copy Format B I USENSTAE Merge Center ce Update To keep up to date with security updates, fixes, and improvements, choose Check for Updates x fx $ 2 0 Cona Form DESEF Public Bank IP O Box 5551212, Miami, Florida 33999 Ph (305) 555 1212 Byte of Accounting 123 Speed Lane Miami, Florida 33999 Previous Balance Deposits Credits Checks Debits Account Number Statement Date 33999999 6 30 2003 Ending Balance 194,585 00 86,595 00 107,990 00 107,990 00 23 Activity in date order Date Jun 01 Jun 07 Jun 15 Jun 16 Jun 21 Jun 22 Jun 22 Jun 22 Jun 23 Jun 24 Jun 26 Jun 26 Jun 27 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 Amount 183,300 00 36,000 00 27,500 00 7 570 00 10,700 00 2,900 00 15 00 5,400 00 3 715 00 1 600 00 775 00 320 00 275 00 225 00 835 00 50 00 Balance 183,300 00 147,300 00 119 800 00 127,370 00 116,670 00 113,770 00 113,755 00 108,355 00 112,070 00 110,470 00 109 695 00 109,375 00 109,100 00 108,875 00 108,040 00 107,990 00 107,990 00 Jun 27 Jun 27 Jun 29 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 Transactions General Journal Bank Reconcilation Worksheet Income Statement Ready Changes in Owner's Equity Balance MacBook Air MacBook Air esc OD 3 000 FO cel File Edit View Insert Format Tools Data Window Help rw Insert Page Layout Formulas Data Review View X cut AA Wrap Text Copy BIU R OA 3 Merge Center Format Update To keep up to date with security updates, fixes, and improvements, choose Check for Updates x fx $ 20 Conditional Format Cell 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 Bank Statement Company's Books Ending Balance per books 109,570 000 Ending balance per bank 107,990 00 Additions Additions Total dd to Books dd to Bank Total Deductions de Deductions Deduct from Books Deduct from bank Ending Correct cash balance Ending Correct cash balance Transactions General Journal Bank Reconcilation Worksheet Income Statement Changes in Owner's Equity Balance Sheet How to Create Ready MacBook Air 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 $300 00 Calculate the depreciation for one month using the straight line method of depreciation The Computer Equipment has an estimated useful life of 5 00 years Management has decided that assets purchased during a month are treated as if purchased on the first day of the 36 month The computer equipment's scrap value is $20,000 00 Calculate the depreciation for one month using the double declining method of depreciation 37 A review of the payroll records show that unpaid salaries in the amount of $501 00 are owed by Byte for three days, June 28 30 Ignore payroll taxes 38 The note payable to Royce Computers (transactions 04 and 07) 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 $144,000 00 On June 10, eight days later, $27,500 00 was repaid Interest expense must be calculated on the $144,000 00 for eight days In addition, interest expense on the $116,500 00 balance of the loan T($144,000 00 less $27,500 00 $116,500 00) must be calculated for the 20 days remaining in the month of June 39 Based on the information on the Bank Reconciliation sheet prepare the journal entry required to increases cash 40 Based on the information on the Bank Reconciliation sheet prepare the journal entry required to decreases cash 41 Our CPA has informed us to estimate that 3 00 of Computer Consulting Revenue will be uncollectable 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 L 45 Close the income summary account 46 Close the dividends account Accoun Account Recerats 15600 5600 June 22 Received a bill for $1,115 00 from Computer Parts and Repair Co for repairs to the computer equipment The invoice number was 43254 June 22 Check 5010 was used to pay salaries of $835 00 to equipment operators for the week ending June 18 Ignore payroll taxes 20 June 23 Cash in the amount of $3,365 00 was received on billings June 23 Purchased office supplies for $950 00 from Staples on account The invoice number was 65498 Included in the purchase was 10 units of Super Route Pro at a cost of $51 00 each 10 51 1510 00 with Super Route 22 June 28 Billed $5,910 00 to miscellaneous customers for services performed to June 25 23 Juhe 29 Cash in the amount of $5,600 00 was received for billings 24 June 29 Paid the bill received on June 22, from Computer Parts and Repairs Co with Cheek 3011 25 June 29 Check 5012 was used to pay salaries of $835 0016 equipment operators for the week ending lune 25 Ignore payroll taxes June 30 Received a bill for the amount of $940 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 21 per share to Jeremy, a shareholder of Byte 28 June 30 Check 5014 was used to pay for a cash dividend of $0 21 per share to Liliana Vespa a shareholder of Byte 29 June 30 Check 5015 was used to pay for a cash dividend of $0 21 per share to Courtney, a shareholder of Byte Adjusting Entries Round to two decimal places 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 $403 00 worth of general office supplies remained on hand as of June 30 31 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 29 The annual interest rate on the mortgage payable was 9 00 percent Interest expense for one half month should be 32 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 for the period of June 28 30 The fixed assets have estimated useful lives as follows The Building and the Office Equipment have the following estimated useful lives 35 Building 31 5 years Office Equipment 7 0 years Assume Cash Check 7 10 Byte of Accounting Liliana Vespa 6500 Transaction Description of transaction June 1 Jeremy made an investment in Byte of Accounting, Inc , by purchasing 2,600 shares of its common stock 01 paying $31,800 in cash and by contributing computer equipment with a fair market value of $46,200 The par value of the common stock was $26 per share June I Courtney made an investment in Byte of Accounting, Inc , by purchasing 550 shares of its common stock 02 by contributing computer equipment with a fair market value of $15,000 and office equipment with a fair value of $1,500 The par value of the common stock was $26 per share Credit 03 June 1 Liliana Vespa made an investment in Byte of Accounting, Inc by purchasing 5,050 shares of its common stock for $151,500 cash The par value of the common stock was $26 per share June 2 Check 5002 was used to make a down payment of $36,000 00 on additional computer equipment that 04 was purchased from Royce Computers, invoice number 76542 The full price of the computer was $180,000 00 A five year note was executed by Byte for the balance Debit June 4 Additional office equipment costing $400 00 was purchased on credit from Discount Computer Corporation The invoice number was 98432 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 07 Jun June 10 Check 5003 was used to make a $27,500 00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers 1500 08 1 June 10 Purchased office supplies for $1,900 00 from Staples on account The invoice number was 61298 Included in the purchase was 10 units of Super RoutePro at a cost of $45 00 each June 14 Check 5004 was used to purchase a one year insurance policy covering its computer equipment for 54,968 00 from Seth's Insurance The effective date of the policy was June 16 and the invoice number was 2387) 10 June 16 Checks in the amount of $7 750 00 was received for services performed for cash customer June 16 Byte purchased a building and the land it is on for S107,000 00 to house its repair facilities and to store computer equipment The lot on which the building is located is valued at $17,000 00 The balance of the cost is to be allocated to the building Check 5005 was used to make the down payment of $10,700 00 A thirty year mortgage with an inital payement due on August 1st, was established for the balance 12 June 17 Check 5006 for $5,400 00 was paid for rent of the office space for June, July and August 13 June 17 Received invoice number 26354 in the amount of $275 00 from the local newspaper for advertising 14 June 21 Billed various miscellaneous local customers $4 200 00 for consulting services performed une 21 Check 5007 was used to purchase a fax machine for the orice from Onice Machines Express for S775 00 The invoice number was 975 328 16 June 21 Accounts payable in the amount of $320,00 were paid with Check 5008 17 June 22 Cheek 1 so09 was used to pay the advertising bill that was received on June 17, accounr pereble for advent 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 2 Date De 37 Accant, 87 Alcant is 7 Account 16 Acc H 7 Alc 18 Ace 24 Ale Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit braun 7 MP a 36000 180,000 D K ) Insert Page Layout Formulas Data Review View cut A A 5 Wrap Text 9 Copy Format B I USENSTAE Merge Center ce Update To keep up to date with security updates, fixes, and improvements, choose Check for Updates x fx $ 2 0 Cona Form DESEF Public Bank IP O Box 5551212, Miami, Florida 33999 Ph (305) 555 1212 Byte of Accounting 123 Speed Lane Miami, Florida 33999 Previous Balance Deposits Credits Checks Debits Account Number Statement Date 33999999 6 30 2003 Ending Balance 194,585 00 86,595 00 107,990 00 107,990 00 23 Activity in date order Date Jun 01 Jun 07 Jun 15 Jun 16 Jun 21 Jun 22 Jun 22 Jun 22 Jun 23 Jun 24 Jun 26 Jun 26 Jun 27 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 Amount 183,300 00 36,000 00 27,500 00 7 570 00 10,700 00 2,900 00 15 00 5,400 00 3 715 00 1 600 00 775 00 320 00 275 00 225 00 835 00 50 00 Balance 183,300 00 147,300 00 119 800 00 127,370 00 116,670 00 113,770 00 113,755 00 108,355 00 112,070 00 110,470 00 109 695 00 109,375 00 109,100 00 108,875 00 108,040 00 107,990 00 107,990 00 Jun 27 Jun 27 Jun 29 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 Transactions General Journal Bank Reconcilation Worksheet Income Statement Ready Changes in Owner's Equity Balance MacBook Air MacBook Air esc OD 3 000 FO cel File Edit View Insert Format Tools Data Window Help rw Insert Page Layout Formulas Data Review View X cut AA Wrap Text Copy BIU R OA 3 Merge Center Format Update To keep up to date with security updates, fixes, and improvements, choose Check for Updates x fx $ 20 Conditional Format Cell 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 Bank Statement Company's Books Ending Balance per books 109,570 000 Ending balance per bank 107,990 00 Additions Additions Total dd to Books dd to Bank Total Deductions de Deductions Deduct from Books Deduct from bank Ending Correct cash balance Ending Correct cash balance Transactions General Journal Bank Reconcilation Worksheet Income Statement Changes in Owner's Equity Balance Sheet How to Create Ready MacBook Air 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 $300 00 Calculate the depreciation for one month using the straight line method of depreciation The Computer Equipment has an estimated useful life of 5 00 years Management has decided that assets purchased during a month are treated as if purchased on the first day of the 36 month The computer equipment's scrap value is $20,000 00 Calculate the depreciation for one month using the double declining method of depreciation 37 A review of the payroll records show that unpaid salaries in the amount of $501 00 are owed by Byte for three days, June 28 30 Ignore payroll taxes 38 The note payable to Royce Computers (transactions 04 and 07) 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 $144,000 00 On June 10, eight days later, $27,500 00 was repaid Interest expense must be calculated on the $144,000 00 for eight days In addition, interest expense on the $116,500 00 balance of the loan T($144,000 00 less $27,500 00 $116,500 00) must be calculated for the 20 days remaining in the month of June 39 Based on the information on the Bank Reconciliation sheet prepare the journal entry required to increases cash 40 Based on the information on the Bank Reconciliation sheet prepare the journal entry required to decreases cash 41 Our CPA has informed us to estimate that 3 00 of Computer Consulting Revenue will be uncollectable 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 L 45 Close the income summary account 46 Close the dividends account Accoun Account Recerats 15600 5600 June 22 Received a bill for $1,115 00 from Computer Parts and Repair Co for repairs to the computer equipment The invoice number was 43254 June 22 Check 5010 was used to pay salaries of $835 00 to equipment operators for the week ending June 18 Ignore payroll taxes 20 June 23 Cash in the amount of $3,365 00 was received on billings June 23 Purchased office supplies for $950 00 from Staples on account The invoice number was 65498 Included in the purchase was 10 units of Super Route Pro at a cost of $51 00 each 10 51 1510 00 with Super Route 22 June 28 Billed $5,910 00 to miscellaneous customers for services performed to June 25 23 Juhe 29 Cash in the amount of $5,600 00 was received for billings 24 June 29 Paid the bill received on June 22, from Computer Parts and Repairs Co with Cheek 3011 25 June 29 Check 5012 was used to pay salaries of $835 0016 equipment operators for the week ending lune 25 Ignore payroll taxes June 30 Received a bill for the amount of $940 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 21 per share to Jeremy, a shareholder of Byte 28 June 30 Check 5014 was used to pay for a cash dividend of $0 21 per share to Liliana Vespa a shareholder of Byte 29 June 30 Check 5015 was used to pay for a cash dividend of $0 21 per share to Courtney, a shareholder of Byte Adjusting Entries Round to two decimal places 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 $403 00 worth of general office supplies remained on hand as of June 30 31 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 29 The annual interest rate on the mortgage payable was 9 00 percent Interest expense for one half month should be 32 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 for the period of June 28 30 The fixed assets have estimated useful lives as follows The Building and the Office Equipment have the following estimated useful lives 35 Building 31 5 years Office Equipment 7 0 years Assume Cash Check 7 10 Byte of Accounting Liliana Vespa 6500 Transaction Description of transaction June 1 Jeremy made an investment in Byte of Accounting, Inc , by purchasing 2,600 shares of its common stock 01 paying $31,800 in cash and by contributing computer equipment with a fair market value of $46,200 The par value of the common stock was $26 per share June I Courtney made an investment in Byte of Accounting, Inc , by purchasing 550 shares of its common stock 02 by contributing computer equipment with a fair market value of $15,000 and office equipment with a fair value of $1,500 The par value of the common stock was $26 per share Credit 03 June 1 Liliana Vespa made an investment in Byte of Accounting, Inc by purchasing 5,050 shares of its common stock for $151,500 cash The par value of the common stock was $26 per share June 2 Check 5002 was used to make a down payment of $36,000 00 on additional computer equipment that 04 was purchased from Royce Computers, invoice number 76542 The full price of the computer was $180,000 00 A five year note was executed by Byte for the balance Debit June 4 Additional office equipment costing $400 00 was purchased on credit from Discount Computer Corporation The invoice number was 98432 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 07 Jun June 10 Check 5003 was used to make a $27,500 00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers 1500 08 1 June 10 Purchased office supplies for $1,900 00 from Staples on account The invoice number was 61298 Included in the purchase was 10 units of Super RoutePro at a cost of $45 00 each June 14 Check 5004 was used to purchase a one year insurance policy covering its computer equipment for 54,968 00 from Seth's Insurance The effective date of the policy was June 16 and the invoice number was 2387) 10 June 16 Checks in the amount of $7 750 00 was received for services performed for cash customer June 16 Byte purchased a building and the land it is on for S107,000 00 to house its repair facilities and to store computer equipment The lot on which the building is located is valued at $17,000 00 The balance of the cost is to be allocated to the building Check 5005 was used to make the down payment of $10,700 00 A thirty year mortgage with an inital payement due on August 1st, was established for the balance 12 June 17 Check 5006 for $5,400 00 was paid for rent of the office space for June, July and August 13 June 17 Received invoice number 26354 in the amount of $275 00 from the local newspaper for advertising 14 June 21 Billed various miscellaneous local customers $4 200 00 for consulting services performed une 21 Check 5007 was used to purchase a fax machine for the orice from Onice Machines Express for S775 00 The invoice number was 975 328 16 June 21 Accounts payable in the amount of $320,00 were paid with Check 5008 17 June 22 Cheek 1 so09 was used to pay the advertising bill that was received on June 17, accounr pereble for advent 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 2 Date De 37 Accant, 87 Alcant is 7 Account 16 Acc H 7 Alc 18 Ace 24 Ale Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit braun 7 MP a 36000 180,000

Question

Journal Entries for  31 46 D K )    Insert Page Layout Formulas Data Review View   cut A  A       5 Wrap Text 9 Copy   Format B I USENSTAE Merge   Center ce Update To keep up to date with security updates, fixes, and improvements, choose Check for Updates  x fx $     2 0 Cona Form DESEF Public Bank IP O  Box 5551212, Miami, Florida 33999 Ph   (305) 555 1212 Byte of Accounting 123 Speed Lane Miami, Florida 33999 Previous Balance Deposits Credits Checks Debits Account Number Statement Date 33999999 6 30 2003 Ending Balance 194,585 00 86,595 00 107,990 00 107,990 00 23 Activity in date order Date Jun 01 Jun 07 Jun 15 Jun 16 Jun 21 Jun 22 Jun 22 Jun 22 Jun 23 Jun 24 Jun 26 Jun 26 Jun 27 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 Amount 183,300 00  36,000 00  27,500 00 7 570 00  10,700 00  2,900 00  15 00  5,400 00 3 715 00  1 600 00  775 00  320 00  275 00  225 00  835 00  50 00 Balance 183,300 00 147,300 00 119 800 00 127,370 00 116,670 00 113,770 00 113,755 00 108,355 00 112,070 00 110,470 00 109 695 00 109,375 00 109,100 00 108,875 00 108,040 00 107,990 00 107,990 00 Jun 27 Jun 27 Jun 29 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  Transactions General Journal Bank Reconcilation Worksheet Income Statement Ready Changes in Owner's Equity Balance MacBook Air MacBook Air esc OD 3 000 FO cel File Edit View Insert Format Tools Data Window Help rw Insert Page Layout Formulas Data Review View X cut AA       Wrap Text Copy BIU R OA 3 Merge   Center  Format Update To keep up to date with security updates, fixes, and improvements, choose Check for Updates  x   fx $     20 Conditional Format Cell 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 Bank Statement Company's Books Ending Balance per books 109,570 000 Ending balance per bank 107,990 00 Additions Additions Total dd to Books dd to Bank Total Deductions de Deductions Deduct from Books Deduct from bank Ending Correct cash balance Ending Correct cash balance Transactions General Journal Bank Reconcilation Worksheet Income Statement Changes in Owner's Equity Balance Sheet How to Create Ready MacBook Air 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 $300 00  Calculate the depreciation for one month using the straight line method of depreciation  The Computer Equipment has an estimated useful life of 5 00 years  Management has decided that assets purchased during a month are treated as if purchased on the first day of the 36 month  The computer equipment's scrap value is $20,000 00  Calculate the depreciation for one month using the double declining method of depreciation  37  A review of the payroll records show that unpaid salaries in the amount of $501 00 are owed by Byte for three days, June 28   30  Ignore payroll taxes  38  The note payable to Royce Computers (transactions 04 and 07) 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 $144,000 00  On June 10, eight days later, $27,500 00 was repaid  Interest expense must be calculated on the $144,000 00 for eight days  In addition, interest expense on the $116,500 00 balance of the loan T($144,000 00 less $27,500 00   $116,500 00) must be calculated for the 20 days remaining in the month of June  39  Based on the information on the  Bank Reconciliation  sheet prepare the journal entry required to increases cash  40  Based on the information on the  Bank Reconciliation  sheet prepare the journal entry required to decreases cash  41  Our CPA has informed us to estimate that 3 00  of Computer   Consulting Revenue will be uncollectable  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  L 45  Close the income summary account 46  Close the dividends account Accoun Account Recerats  15600 5600 June 22  Received a bill for $1,115 00 from Computer Parts and Repair Co  for repairs to the computer equipment  The invoice number was 43254  June 22  Check   5010 was used to pay salaries of $835 00 to equipment operators for the week ending June 18   Ignore payroll taxes  20  June 23  Cash in the amount of $3,365 00 was received on billings  June 23  Purchased office supplies for $950 00 from Staples on account  The invoice number was 65498  Included in the purchase was 10 units of Super Route Pro at a cost of $51 00 each  10 51  1510 00 with Super Route 22  June 28  Billed $5,910 00 to miscellaneous customers for services performed to June 25  23  Juhe 29  Cash in the amount of $5,600 00 was received for billings  24  June 29  Paid the bill received on June 22, from Computer Parts and Repairs Co with Cheek  3011  25  June 29  Check   5012 was used to pay salaries of $835 0016 equipment operators for the week ending lune 25 Ignore payroll taxes  June 30  Received a bill for the amount of $940 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 21 per share to Jeremy, a shareholder of Byte  28 June 30  Check   5014 was used to pay for a cash dividend of $0 21 per share to Liliana Vespa a shareholder of Byte  29  June 30  Check   5015 was used to pay for a cash dividend of $0 21 per share to Courtney, a shareholder of Byte  Adjusting Entries   Round to two decimal places  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 $403 00 worth of general office supplies remained on hand as of June 30  31  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  29 The annual interest rate on the mortgage payable was 9 00 percent  Interest expense for one half month should be 32  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 for the period of June 28 30  The fixed assets have estimated useful lives as follows  The Building and the Office Equipment have the following estimated useful lives  35  Building   31 5 years Office Equipment   7 0 years Assume Cash   Check 7 10 Byte of Accounting Liliana Vespa 6500 Transaction Description of transaction June 1  Jeremy made an investment in Byte of Accounting, Inc , by purchasing 2,600 shares of its common stock 01  paying $31,800 in cash and by contributing computer equipment with a fair market value of $46,200  The par value of the common stock was $26 per share  June I  Courtney made an investment in Byte of Accounting, Inc , by purchasing 550 shares of its common stock 02  by contributing computer equipment with a fair market value of $15,000 and office equipment with a fair value of $1,500  The par value of the common stock was $26 per share  Credit 03  June 1  Liliana Vespa made an investment in Byte of Accounting, Inc  by purchasing 5,050 shares of its common stock for $151,500 cash  The par value of the common stock was $26 per share  June 2  Check   5002 was used to make a down payment of $36,000 00 on additional computer equipment that 04  was purchased from Royce Computers, invoice number 76542  The full price of the computer was $180,000 00 A five year note was executed by Byte for the balance  Debit June 4  Additional office equipment costing $400 00 was purchased on credit from Discount Computer Corporation  The invoice number was 98432  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 07 Jun June 10  Check   5003 was used to make a $27,500 00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers  1500 08 1 June 10  Purchased office supplies for $1,900 00 from Staples on account  The invoice number was 61298  Included in the purchase was 10 units of Super RoutePro at a cost of $45 00 each  June 14  Check   5004 was used to purchase a one year insurance policy covering its computer equipment for 54,968 00 from Seth's Insurance  The effective date of the policy was June 16 and the invoice number was 2387) 10  June 16  Checks in the amount of $7 750 00 was received for services performed for cash customer June 16  Byte purchased a building and the land it is on for S107,000 00 to house its repair facilities and to store computer equipment  The lot on which the building is located is valued at $17,000 00  The balance of the cost is to be allocated to the building  Check   5005 was used to make the down payment of $10,700 00  A thirty year mortgage with an inital payement due on August 1st, was established for the balance  12  June 17  Check  5006 for $5,400 00 was paid for rent of the office space for June, July and August 13  June 17  Received invoice number 26354 in the amount of $275 00 from the local newspaper for advertising 14  June 21  Billed various miscellaneous local customers $4 200 00 for consulting services performed  une 21  Check   5007 was used to purchase a fax machine for the orice from Onice Machines Express for S775 00  The invoice number was 975 328  16  June 21  Accounts payable in the amount of $320,00 were paid with Check   5008 17  June 22  Cheek 1 so09 was used to pay the advertising bill that was received on June 17, accounr pereble for advent 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 2 Date De 37 Accant, 87 Alcant is 7 Account 16 Acc  H 7  Alc    18 Ace   24 Ale   Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit braun 7 MP a 36000 180,000 D K )    Insert Page Layout Formulas Data Review View   cut A  A       5 Wrap Text 9 Copy   Format B I USENSTAE Merge   Center ce Update To keep up to date with security updates, fixes, and improvements, choose Check for Updates  x fx $     2 0 Cona Form DESEF Public Bank IP O  Box 5551212, Miami, Florida 33999 Ph   (305) 555 1212 Byte of Accounting 123 Speed Lane Miami, Florida 33999 Previous Balance Deposits Credits Checks Debits Account Number Statement Date 33999999 6 30 2003 Ending Balance 194,585 00 86,595 00 107,990 00 107,990 00 23 Activity in date order Date Jun 01 Jun 07 Jun 15 Jun 16 Jun 21 Jun 22 Jun 22 Jun 22 Jun 23 Jun 24 Jun 26 Jun 26 Jun 27 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 Amount 183,300 00  36,000 00  27,500 00 7 570 00  10,700 00  2,900 00  15 00  5,400 00 3 715 00  1 600 00  775 00  320 00  275 00  225 00  835 00  50 00 Balance 183,300 00 147,300 00 119 800 00 127,370 00 116,670 00 113,770 00 113,755 00 108,355 00 112,070 00 110,470 00 109 695 00 109,375 00 109,100 00 108,875 00 108,040 00 107,990 00 107,990 00 Jun 27 Jun 27 Jun 29 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  Transactions General Journal Bank Reconcilation Worksheet Income Statement Ready Changes in Owner's Equity Balance MacBook Air MacBook Air esc OD 3 000 FO cel File Edit View Insert Format Tools Data Window Help rw Insert Page Layout Formulas Data Review View X cut AA       Wrap Text Copy BIU R OA 3 Merge   Center  Format Update To keep up to date with security updates, fixes, and improvements, choose Check for Updates  x   fx $     20 Conditional Format Cell 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 Bank Statement Company's Books Ending Balance per books 109,570 000 Ending balance per bank 107,990 00 Additions Additions Total dd to Books dd to Bank Total Deductions de Deductions Deduct from Books Deduct from bank Ending Correct cash balance Ending Correct cash balance Transactions General Journal Bank Reconcilation Worksheet Income Statement Changes in Owner's Equity Balance Sheet How to Create Ready MacBook Air 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 $300 00  Calculate the depreciation for one month using the straight line method of depreciation  The Computer Equipment has an estimated useful life of 5 00 years  Management has decided that assets purchased during a month are treated as if purchased on the first day of the 36 month  The computer equipment's scrap value is $20,000 00  Calculate the depreciation for one month using the double declining method of depreciation  37  A review of the payroll records show that unpaid salaries in the amount of $501 00 are owed by Byte for three days, June 28   30  Ignore payroll taxes  38  The note payable to Royce Computers (transactions 04 and 07) 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 $144,000 00  On June 10, eight days later, $27,500 00 was repaid  Interest expense must be calculated on the $144,000 00 for eight days  In addition, interest expense on the $116,500 00 balance of the loan T($144,000 00 less $27,500 00   $116,500 00) must be calculated for the 20 days remaining in the month of June  39  Based on the information on the  Bank Reconciliation  sheet prepare the journal entry required to increases cash  40  Based on the information on the  Bank Reconciliation  sheet prepare the journal entry required to decreases cash  41  Our CPA has informed us to estimate that 3 00  of Computer   Consulting Revenue will be uncollectable  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  L 45  Close the income summary account 46  Close the dividends account Accoun Account Recerats  15600 5600 June 22  Received a bill for $1,115 00 from Computer Parts and Repair Co  for repairs to the computer equipment  The invoice number was 43254  June 22  Check   5010 was used to pay salaries of $835 00 to equipment operators for the week ending June 18   Ignore payroll taxes  20  June 23  Cash in the amount of $3,365 00 was received on billings  June 23  Purchased office supplies for $950 00 from Staples on account  The invoice number was 65498  Included in the purchase was 10 units of Super Route Pro at a cost of $51 00 each  10 51  1510 00 with Super Route 22  June 28  Billed $5,910 00 to miscellaneous customers for services performed to June 25  23  Juhe 29  Cash in the amount of $5,600 00 was received for billings  24  June 29  Paid the bill received on June 22, from Computer Parts and Repairs Co with Cheek  3011  25  June 29  Check   5012 was used to pay salaries of $835 0016 equipment operators for the week ending lune 25 Ignore payroll taxes  June 30  Received a bill for the amount of $940 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 21 per share to Jeremy, a shareholder of Byte  28 June 30  Check   5014 was used to pay for a cash dividend of $0 21 per share to Liliana Vespa a shareholder of Byte  29  June 30  Check   5015 was used to pay for a cash dividend of $0 21 per share to Courtney, a shareholder of Byte  Adjusting Entries   Round to two decimal places  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 $403 00 worth of general office supplies remained on hand as of June 30  31  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  29 The annual interest rate on the mortgage payable was 9 00 percent  Interest expense for one half month should be 32  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 for the period of June 28 30  The fixed assets have estimated useful lives as follows  The Building and the Office Equipment have the following estimated useful lives  35  Building   31 5 years Office Equipment   7 0 years Assume Cash   Check 7 10 Byte of Accounting Liliana Vespa 6500 Transaction Description of transaction June 1  Jeremy made an investment in Byte of Accounting, Inc , by purchasing 2,600 shares of its common stock 01  paying $31,800 in cash and by contributing computer equipment with a fair market value of $46,200  The par value of the common stock was $26 per share  June I  Courtney made an investment in Byte of Accounting, Inc , by purchasing 550 shares of its common stock 02  by contributing computer equipment with a fair market value of $15,000 and office equipment with a fair value of $1,500  The par value of the common stock was $26 per share  Credit 03  June 1  Liliana Vespa made an investment in Byte of Accounting, Inc  by purchasing 5,050 shares of its common stock for $151,500 cash  The par value of the common stock was $26 per share  June 2  Check   5002 was used to make a down payment of $36,000 00 on additional computer equipment that 04  was purchased from Royce Computers, invoice number 76542  The full price of the computer was $180,000 00 A five year note was executed by Byte for the balance  Debit June 4  Additional office equipment costing $400 00 was purchased on credit from Discount Computer Corporation  The invoice number was 98432  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 07 Jun June 10  Check   5003 was used to make a $27,500 00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers  1500 08 1 June 10  Purchased office supplies for $1,900 00 from Staples on account  The invoice number was 61298  Included in the purchase was 10 units of Super RoutePro at a cost of $45 00 each  June 14  Check   5004 was used to purchase a one year insurance policy covering its computer equipment for 54,968 00 from Seth's Insurance  The effective date of the policy was June 16 and the invoice number was 2387) 10  June 16  Checks in the amount of $7 750 00 was received for services performed for cash customer June 16  Byte purchased a building and the land it is on for S107,000 00 to house its repair facilities and to store computer equipment  The lot on which the building is located is valued at $17,000 00  The balance of the cost is to be allocated to the building  Check   5005 was used to make the down payment of $10,700 00  A thirty year mortgage with an inital payement due on August 1st, was established for the balance  12  June 17  Check  5006 for $5,400 00 was paid for rent of the office space for June, July and August 13  June 17  Received invoice number 26354 in the amount of $275 00 from the local newspaper for advertising 14  June 21  Billed various miscellaneous local customers $4 200 00 for consulting services performed  une 21  Check   5007 was used to purchase a fax machine for the orice from Onice Machines Express for S775 00  The invoice number was 975 328  16  June 21  Accounts payable in the amount of $320,00 were paid with Check   5008 17  June 22  Cheek 1 so09 was used to pay the advertising bill that was received on June 17, accounr pereble for advent 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 2 Date De 37 Accant, 87 Alcant is 7 Account 16 Acc  H 7  Alc    18 Ace   24 Ale   Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit braun 7 MP a 36000 180,000

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Journal Entries for #31-46 D K )- = Insert Page Layout Formulas Data Review View & cut A- A = = = 5 Wrap Text

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