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
