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need help journaling these transactions Iron 01. June 1: Byte of Accounting, Inc. acquired $69,000 in cash from Lauryn and issued 3,000 shares of its
need help journaling these transactions
Iron 01. June 1: Byte of Accounting, Inc. acquired $69,000 in cash from Lauryn and issued 3,000 shares of its common stock 02 June 1: Byte of Accounting, Inc, issued 2,600 shares of its common stock to after $24.840 in cash and computer equipment with a fair market value of $34,960 were received 03. June 1: Byte of Accounting, Inc. issued 2,774 shares of its common stock after acquiring from Courtney $49,450 in cash, computer equipment with a fair market value of $13,340 and office equipment with a fair value of $1,012. 04. June 2: A down payment of $35,000 in cash was made on additional computer equipment that was purchased for $175,000. 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 S140 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $26,750 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 $5,136 in cash. The effective date of the policy was June 16. 09. June 16: A check in the amount of $7,500 was received for consulting revenue. 10. June 16: Byte purchased a building and the land it is on for $137,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at s22,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $13.700 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 11. June 17: Cash of $6,900 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 $350 from the local newspaper for advertising. 13. June 21: Accounts payable in the amount of $560 were paid. 14. June 21: A fax machine for the office was purchased for $725 cash. Transaction 31. 32. 33. Description of transaction A review of Byte's job worksheets show that there are unbilled revenues in the amount of $5,250 for the period of June 28-30. 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 $8,500. The office equipment has a scrap value of $350. The computer equipment has no scrap value. Calculate the depreciation for one month. 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. 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 $140,000. On June 10, cight days later, S26,750 was repaid. Interest expense must be calculated on the S140,000 for eight days. In addition, interest expense on the $113,250 balance of the loan ($140,000 less $26,750 = $113,250) must be calculated for the 20 days remaining in the month of June. 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.] 34. 35. Closing Entries 36. Close the revenue accounts. 37. Close the expense accounts. 38. Close the income summary account. 39. Close the dividends account Step by Step Solution
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