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3 Transaction B Byte of Accounting, Inc. Asia Smith 7749 Description of transaction June 1: Byte of Accounting, Inc. issued 2,650 shares of its common stock to Jeremy after $29.970 in cash and computer equipment with a fair market value of $41,580 were received 01. 02 June 1: Byte of Accounting, Inc. ested 2,071 shares of its common stock after acquiring from Courtney $39,150 in cah, computer equipment with a fair market value of $15,660 and office equipment with a fair value of $1,107 03 June 1: Byte of Accounting, Inc. acquired 575.600 in cash from Asia Smith and issued 2,800 shares of its common stock 04 Rune 2. A down payment of $32,000 in cash was made on additional computer equipment that was purchased for $160,000. A five-year nole was executed by Byte for the balance 10 11 os 1 13 June 4. Additional office equipment costing 5400 was purchased on credit to Discount Computer Corporation 06 14 15 June Unsatisfactory office equipment costing SHO wa umed to Discount Computer for credit to be applied against the outstanding balance awed by llyn 07 June 10. Bly paid 524.500 on the balance towed on the June 2prchase of computer 17 OR June 14: A one year insurance policy covering its computer equipment was purchased by Blyse for 56,480 In cash. The effective date of the policy was line 16 Pune Centre consultan reveste af 56,230 was received 10 June 16 By purchased abbing and the land it is on for 5141,000, whouse is repur facilities and to are computer equipment. The lot on which the building is located is valued at $23.000 The balance of the cost to be located to the building ly mula cash down payment of $14.100 and executed a mortage for the balance. The mais payable insight qual annat installments beginning July 1 22 11 June 11 Ch of $3,800 was paid for rent for June and Judy Put the total amount into the Prepaid Real 24 @ @ Home Insert Draw Page Layout AS7472 (1) Formulas Data Review X View Tell me Arial 10 A A Paste BTU === ======= General ava- 2 Wrap Text Merge & Center A4 X fx 1 $%% 13 8 June 21: Billed various miscellaneous local customers 54,700 for consulting services performed. June 21: A fax machine for the office was purchased for 5750 cash D E F 14. 28 29 30 31 32 33 34 35 15. June 21: Accounts payable in the amount of $32.yere paid. 16 June 22- Paid the advertising bill that was received on June 17. 17. June 22Received a bill for $1,140 from Computer Parts and Repair Co for repairs to the computer equipment 18 June 22: Pald salaries of $1,010 10 equipment operations for the week ending June 18 30 37 38 39 40 41 12 3 19. June 23: Cash in the amount of $3.765 was moved on billings 20 June 23: Purchased office supplies for 5005 credit Record the purchase an increase to the se 64 21 June 2x Billed $5,280 to miscellanean customes for services performed to line 25 June 29: Cash in the amount of 55,001 was received for wings 42 23 June 29: Paid the bill received on June 22, from Computer Parts and Repair Co. 24 June 29. Pald salaries of $1.010 to equipment operators for the weekendine June 25 51 52 25 June 30: Received all for the amount of S105 from OA GO and Gas C June 30 Paid cah dividend or 50.15 perse to the three shares of you. IMPORTANT NOTE: The number of stures of capital stock outstanding can be determined on the street Adjusting Entries Round to we decimal places ST 27 The only made on June 17 was for June adwy Expense that cated within A physical inventory showed that only 700 worth of the supplement hine 30 Home Insert Draw AS7472 (1) Page Layout Formulas Data Review View Tell me X UG Arial 10AA === Paste Wrap Text General B IO OA Merge & Center A4 v $% % -28 fx 1 A 29 B The annual interest rate on the mortgage payable was 9.00 percent Interest expense for one-half month should be computed because the building and land were purchased and the ability incurred on June 16. D E G 62 03 30 Information relating to the prepaid insurance may be obtained from the transaction recorded on June 14. Expense the amount associated with one half meth's insurance 54 85 31 A review of Byte's job worksheets show that there are unbilled revenues in the amount of $5,375 for the period of June 28-30 32 68 07 58 59 70 71 The faced assets have estimated useful lives as follows: Building - 31 5 years Computer Equipment - 5.0 years + Office Equipment -70 years Use the straight line method of depreciation Management has decided that assets purchased during month are treated as if purchased on the first day of the month The building's sera valoris 5500. The office equipment has a serap value of 5500. The computer equipment has no scrap value. Calculate the depreciation for one month 72 73 33 A review of the payroll records show that unpaid salaries in the ment of S606 are owed by Ryne for three days, June 21 - 30 74 75 34 76 77 The note payable relating to the June 2. and 10 transactions is a five-year sot, with interest at the rate of 12 percentually. Interest expense should be computed based on a 360 day year IMPORTANT NOTE: The original note on the computer equipment pached on June 2 w 5128,000 On June 10, cight days later, 524500 was paid interest expense must be calculated on the S128.000 for eight days. In addition, escapes on the 5103,500 Nalance of the loan 5128.000 524,500 - 5103.500) at bested for the 20 days remaining in the mouth of June 15 Income taxes are to be computed at the tale of 35 percent of net income before taxes IMPORTANT NOTE: Since the come are a percent of the net income you will want to prepare the Income Statement through the Netcome Before Tax in the workshort contains of the accounts and their bulances which you can then transfer to the appropriate financial Closing Entries 14 5 16 27 Home Formulas AS7472 (1) Data Review View Tell me A A Daste = == Insert Draw Page Layout X Arial 10 0 BTU 1 x fx 1 A 38 Close the comment General Wrap Text Merge Center AA $ %) 00 30 39 Close the dividende 3 + Home Insert Draw Page Layout Formulas Data Review View Tell me X Arial 10 19 A recenter Al x fe Number 0 . Data Debe Date Data Cube C D Date ONG Debe CG 1 Name 2 11oCash 3 1120 Accountant 1130 Parts 5 1140 Pad Rare 6 $150 Supps 7 1211 OME 1313 cm Depiromet 1311 Computer Foue 10 1312 Acum Dupe computer 1411 hugo 12 1412 AC Depending 1510 Land 14 2101 ALPwy 2162 MP 2103 Pay 2105 SP 7100 Tamsay 2201 Mangga 20 2202 No Pay 3100 Capital 22 3200 mg 1300 inte 34 5400 4100 Comprar 5010 Ranta 1020 Stary 5030 Ang Expert Repers & Mart Osore ODO SOS O OG w D De De De De De Depeche per 5120 Chant of Account income State