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Please help me figure out the Adjusting Entries section of an accounting journal rounded to two decimal places/ Transaction Description of transaction 01. June 1:
Please help me figure out the Adjusting Entries section of an accounting journal rounded to two decimal places/
Transaction Description of transaction 01. June 1: Hudson Bloom invested $145,429.00 cash and computer equipment with a fair market value of $35,420.00 in his new business, Byte of Accounting. June 1: Check # 5000 was used to purchased office equipment costing $529.00 from Office Express. 1. The invoice number was 87417. June 1: Check # 5001 was used to purchased computer equipment costing $11,960.00 from Bailey Harris. The invoice number was 20117. June 2: Check # 5002 was used to make a down payment of $30,000.00 on additional computer 04. equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $150,000.00. A five-year note was executed by Byte for the balance. June 4: Additional office equipment costing $700.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. June 8: Unsatisfactory office equipment costing $140.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. June 10: Check # 5003 was used to make a $23,000.00 payment reducing the principal owed on the "June 2 purchase of computer equipment from Royce Computers. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer 08. equipment for $5,472.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. June 16: A check in the amount of $7,000.00 was received for services performed for Pitman Pictures. June 16: Byte purchased a building and the land it is on for $107,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $17,000.00. 10. 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. 11. June 17: Check # 5006 for $7,500.00 was paid for rent of the office space for June, July and August June 17: Received invoice number 26354 in the amount of $350.00 from the local newspaper for 1. advertising. 13. June 21: Billed various miscellaneous local customers $4,500.00 for consulting services performed. | June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express for $725.00. The invoice number was 975-328. 15. June 21: Accounts payable in the amount of $560.00 were paid with Check # 5007. 16. June 22: Check # 5010 was used to pay the advertising bill that was received on June 17. 4 June 22: Received a bill for $1,165.00 from Computer Parts and Repair Co. for repairs to the * computer equipment. The invoice number was 43254. 10 June 22: Check # 5009 was used to pay salaries of $985.00 to equipment operators for the week 18. ending June 18. Ignore payroll taxes. 19. June 23: Cash in the amount of $3,605.00 was received on billings. on June 23: Purchased office supplies for $605.00 from Staples on account. The invoice number was 65498. 21. June 28: Billed $5,490.00 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,201.00 was received for billings. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011. June 29: Check # 5012 was used to pay salaries of $985.00 to equipment operators for the week ending June 25. Ignore payroll taxes. 25 June 30: Received a bill for the amount of $915.00 from O&G Oil and Gas Co. The invoice number was 784537. June 3 June 30: Check # 5013 was used to pay for airline tickets of $1,700.00 to send the kids to Grandma Ellen for the July 4th holiday. 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. 2 A physical inventory showed that only $247.00 worth of office supplies remained on hand as of June 30. The annual interest rate on the mortgage payable was 8.00 percent. Interest expense for one-half 29. month should be computed because the building and land were purchased and the liability incurred on June 16. 30. Record a journal entry to reflect that one half month's insurance has expired. 4 A review of Byte's job worksheets show that there are unbilled revenues in the amount of $9,250 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 32. 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 $7,500. The office equipment has a scrap value of $450. The computer equipment has no scrap value. Calculate the depreciation for one month. 73 A review of the payroll records show that unpaid salaries in the amount of $591.00 are owed by Byte for three days, June 28 - 30. Ignore payroll taxes. 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. Closing Entries 35. Close the revenue accounts. 36. Close the expense accounts. 37. Close the income summary account. 38. Close the withdrawals account. 29 29 Jun 30 Jun 30 5090 2103 Interest Expense Interest Payable Interest became due Interest became due 30 30 Jun 30 5100 Jun 30 1130 Insurance Expense Prepaid Insurance Insurance Expense Incurred Insurance Expense Incurred 31 31] Jun 30 Jun 30 1120 4100 Accounts Receivable Unbilled Revenue |Computer & Consulting | Unbilled Revenue 32 32 32 32] Jun 30 Jun 30 Jun 30 Jun 30 5110 1212 1312 1412 Depreciation Expense Deprecation Expense Accum. Depr.-Office Eq Deprecation Expense Accum. Depr.-Computer Deprecation Expense Accum. Depr.-Building Deprecation Expense 33. 33. Jun 30 Jun 30 5020 2105 Salary Expense Salaries Payable Unpaid Salary Unpaid Salary 34 34 Jun 30 Jun 30 5090 2103 Interest Expense Interest Payable Interest became due Interest became due Jun 30 Jun 30 4100 3400 Computer & Consulting Transfer of Revenue Income Summary Transfer of Revenue 35] 36 36 361 36 36 Jun 30 3400 Jun 30 5010 Jun 30 5020 Jun 30 5030 Jun 30 5040 Jun 30 5050 Jun 30 5080 Jun 30 5090 Jun 30 5100 Jun 30 5110 Income Summary Transfer of Expense Rent Expense Transfer of Expense Salary Expense Transfer of Expense Advertising Expense Transfer of Expense Repairs & Maint. Expen Transfer of Expense Oil & Gas Expense Transfer of Expense Supplies Expense Transfer of Expense Interest Expense Transfer of Expense Insurance Expense Transfer of Expense Depreciation Expense Transfer of 36 36 36 36 37] 371 Jun 30 Jun 30 3400 3100 Income Summary Transfer of Net Income to Capital Hudson Bloom, Capital Transfer of Net Income to Capital 38 38. Jun 30 Jun 30 3100 3300 Hudson Bloom, Capital Transfer of Drawings to Capital Hudson Bloom, Withdra Transfer of Drawings to CapitalStep by Step Solution
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