June 29: Check # 5012 was used to pay salaries of $1,010.00 to equipment operators for the week ending June 25. Ignore payroll taxes.

June 30: Received a bill for the amount of $815.00 from O & G Oil and Gas Co. The invoice number was 784537.

June 30: Check # 5013 was used to Dav for airline tickets of $1.800.00 to send the kids to Grandma Ellen for the Julv 4th holidav.

A dinstino Entries - Ronnd to tw

The rent navment made on lune 17 was for .une and .ulv. Hynense the amount associated with one month's rent

A physical inventory showed that only $281.00 worth of office supplies remained on hand as of June 3{

The annual interest rate on the mortgage pavable was 7.00 percent. Interest expense for one-half month should be computed

Record a lournal entry to reflect

A review of Rvre's ich worksheers show that there are unhilled revennes in the amouni

The fixed assets have estimated useful lives as follows:

Building - 31.5 vears

Comnuter Hauinment _ 1 vears

Office Equipment - 7.0 vears

Bold

Use the straight-line method of depreciation. Management has decided that assets purchased during a month are treated as if purchased on the first dav of the month. The building's scrap value is $7.000.00. The office equinment has a scrap value of $450.00. The

A review of the navroll records show that unnaid salaries in the amount of $606.00 are owed by Bvte for three davs. June 28 - 30. Ionore navroll taxes

34

The note payable to Rovce 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 vear.

[IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $132,000.00. On June 10. eight davs later. $25.250.00 was repaid. Interest expense must be

calculated on the $132,000.00 for eight days. In addition, interest expense on the $106,750.00 balance of the loan ($132,000.00 less $25,250.00 = $106,750.00) must be calculated for the 20 days remaining in the month of June.