Number Name 1110 Cash 1120 Accounts Receivable 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 Cost 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 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 Income Tax Expense Normal Balance Debit Debit Debit Debit Debit Debit Credit Debit Credit Debit Credit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Transaction Byte of Accounting, Inc. Corey Toole 8660 Description of transaction June 1: Byte of Accounting, Inc. issued 2,640 shares of its common stock to Jeremy after $30,240 in cash land computer equipment with a fair market value of $43.680 were received. June 1: Byte of Accounting, Inc. issued 2,142 shares of its common stock after acquiring from Courtney S43,400 in cash, computer equipment with a fair market value of $15,680 and office equipment with a fair value of $896. 03. June 1: Byte of Accounting, Inc. acquired $78,400 in cash from Corey Toole and issued 2,800 shares of its common stock. June 2: A down payment of $30,000 in cash was made on additional computer equipment that was Ipurchased for $150,000. A five-year note was executed by Byte for the balance. June 4: Additional office equipment costing $700 was purchased on credit from Discount Computer Corporation. June 8: Unsatisfactory office equipment costing $140 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. June 10: Byte paid $23,000 on the balance it owed on the June 2 purchase of computer equipment. June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $4,968 in cash. The effective date of the policy was June 16. June 16: Computer consultation revenue of $6,500 was received. June 16: Byte purchased a building and the land it is on for $107,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $17,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $10,700 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. June 17: Cash of S6,600 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 S350 from the local newspaper for advertising. 13 June 21: Billed various miscellaneous local customers $4,200 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $850 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. 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 $810 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,365 was received on billings. 20. June 23: Purchased office supplies for $480 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed $5,700 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,400 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 $810 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $890 from O & G Oil and Gas Co. 26. June 30: Paid a cash dividend of S0.19 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 $191.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 8.50 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 insurance. - A review of Byte's job worksheets show that there are unbilled revenues in the amount of $5,750 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 $500. The office equipment has a scrap value of $300. 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 S486 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 $120,000. On June 10, eight days later, $23,000 was repaid. Interest expense must be calculated on the S120,000 for eight days. In addition, interest expense on the $97,000 balance of the 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.) Closing Entries 36. Close the revenue accounts. 37. Close the expense accounts. Close the income summary account. Close the dividends account. A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Account Transaction Name Description - Date Debit I credit 021 TT 05 06 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. ccount Name Description 07T 09 101 121 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Account Name Description Debit Credit W A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Account Name Description Debit Transaction Date 201 211 221 Transaction Date Account Name Description Debit Credit A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Account Nama Description 27 29 300 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Name Description Debit Credit - 32 35 A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. Transaction Date Account Name Description Debit Credit 391 Unadiusted Trial Balance Debit Credit Adjusting Entries Debit Credit Adiusted Trial Balance Debit Credit LLLLLLLLLLLLL Account Number Name 1110 Cash 11201 Accounts Receivable 1130 Prepaid Insurance 1140 Prepaid Rent 1150 | Office Supplies 1211 Office Equip. 12121 Acoum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building Cost 1412 Accum. Depr.-Building 1510 Land 2101 1 Accounts Payable 21021 Advanced Payments 2103 Interest Payable 2105 | Salaries Payable 2106 Income Taxes Payable 2201 | Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3200 Retained Earnings 33001 Dividends ILL LLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL TITUTIOTTITUTI 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 50301 Advertising Expense 5040 Repairs & Maint. Expense 5050 oil & Gas Expense 5080 Supplies Expense 5090l Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Income Tax Expense . TOTAL A Byte of Accounting, Inc. Income Statement For Month Ending January 0, 1900 Revenues Computer & Consulting Revenue Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Oil & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Total Net Income Before Tax I Income Tax Expense Hound sa two decimal places) Net Income After Tax A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending January 0, 1900 Total Balance, Beginning of Period Net Income Dividends Balance, End of Period A Byte of Accounting, Inc. Balance Sheet As of January 0, 1900 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total Long-Term Assets Office Equip. Accum. Depr.-Office Equip. Computer Equip. Accum. Depr.-Computer Equip. Building Cost Accum. Depr.-Building Land Total Total Assets Liabilities Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities Stockholder's Equity Capital Stock Retained Earnings Total Total Liabilities and Stockholder's Equity