PROTECTED VIEW Be careful--files from the Internet 1 C B Transaction Byte of Accounting, Inc. brittney jones 7652 Description of transaction June 1: Byte of Accounting, Inc. issued 2.670 shares of its common stock to Jeremy after $29.700 in cash and computer equipment with a fair market value of $42,390 were received 01. 02. June 1: Byte of Accounting, Inc. issued 2.159 shares of its common stock after acquiring from Courtney S41.850 in cash, computer equipment with a fair market value of $15,660 and office equipment with a fair value of $783. 03. June 1: Byte of Accounting, Inc. acquired $81.000 in cash from brittney jones and issued 3,000 shares of its common stock 04. June 2: A down payment of $31.000 in cash was made on additional computer equipment that was purchased for $155.000. A five-year note was executed by Byte for the balance. OS. June 4: Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation 06. June 8: Unsatisfactory office equipment costing $100 was retumed to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $23.750 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 $5.304 in cash. The effective date of the policy was June 16. 09 June 16: Computer consultation revenue of $6,000 was received. Introduction FAQ Welcome Chart of Accounts Transactions General Journal Worksheet Incor DO Type here to search C OTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected vie fo 1 10. B June 16: Byte purchased a building and the land it is on for $149,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $24,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $14.900 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 11. June 17: Cash of $8.800 was paid for rent for June, July, August and September. Put the total amount into the Prepaid Rent account. 12. June 17. Received a bill of $375 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,100 for consulting services Iperformed. 14. June 21: A fax machine for the office was purchased for $850 cash. 15. June 21: Accounts payable in the amount of $400 were paid. 3 4 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1.165 from Computer Parts and Repair Co. for repairs to the computer equipment 37 38 30 18. June 22: Paid salaries of $1,010 to equipment operators for the week ending June 18. 19. 40 41 June 23: Cash in the amount of $3,285 was received on billings 20. June 23. Purchased office supplies for $655 on credit. Record the purchase as an increase to the assets 43 introduction Welcome Chart of Accounts Transactions General Journal Warsheet Ince AutoSave Ene File Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-Files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. 1 c A4 B 21. June 28: Billed $5.700 to miscellaneous customers for services performed to June 25. 44 45 22 June 29: Cash in the amout of $5,400 was received for billings 45 47 48 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 49 50 24. June 29: Paid salaries of $1.010 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $940 from O&G Oil and Gas Co. 52 53 26. June 30: Paid a cash dividend of $0.19 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.] 54 Adjusting Entries Round to two decimal places. 57 27. The rent payment made on June 17 was for June, July, August and September. Expense the amount associated with one month's rent. 58 59 28. A plysical inventory showed that only $270.00 worth of office supplies remained on hand as of June 30. 60 29 The armial interest rate on the mortgage payable was 7.75 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16 2 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 04 TAG Welcome Chart of Accounts Transactions General Journal Worksheet Incor PROTECTED VIEW Be careful files from the Internet can contain viruses. Unless you fr 1 B A review of Byte's job worksheets show that there are unbilled revenues in the amount of $8.750 for the period of June 28-30 31. 32 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 $400. The computer equipment has no scrap value. Calculate the depreciation for one month 33. A review of the payroll records show that impaid salaries in the amount of $606 are owed by Byte for three days, June 28 - 30. 4 3 34. 77 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 S124,000. On June 10, eight days later, $23.750 was repaid. Interest expense must be calculated on the $124.000 for eight days. In addition, interest expense on the $100,250 balance of the loan (S124.000 less S23.750 - $100,250) must be calculated for the 20 days remaining in the mouth of June.) 78 79 B0 35. 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 01 82 83 Closing Entries Introduction FAQ Welcome Chart of Accounts Transactions General Journal Worksheet Inca Tuna hora B7393 - Protected View Search AutoSave OM File Home Insert Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View f 1 A4 B A 79 80 35. 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.] 81 83 Closing Entries 84 36. Close the revenue accounts. 86 37 Close the expense accounts. 38. Close the income summary account. 87 88 89 90 91 92 93 94 39. Close the dividends account 96 97 90 100 101 100 103 104 10 17 Search B27393 - Protected View Help AutoSave 0 P View Review Data Enable Editing Formulas Insert Page Layout File Home PROTECTED VIEW Be careful--files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View J G H A 14 A B c D E A Byte of Accounting, Inc. General Journal Note: You can only enter data into the yellow filled cells. 2 3 Transaction Account Credit Debit Description Name Date 01 5 6 7 5 9 10 02 12 13 14 15 16 03 18 19 20 21 22 22 24 04 05 26 27 78 29 30 31 32 06 Introduction FAQ Welcome Chart of Accounts Transactions General Journal Worksheet Income Stateme Type here to search i ASUS VivoBook be Cal B E F D 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 Income Tax Expense (Round to two decimal places) Net Income After Tax FAO Welcome Chart of Accounts Transactions General Journal Worksheet Type here to search Search BJ7393 - Protected View utoSave OH H2 Review View Help Formulas Data Insert Home ile Page Layout 1) PROTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Prote A1 E A 1 B D A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending January 0, 1900 2 3 4 Total 5 8 Balance Beginning of Period Net Income Dividends Balance, End of Period 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 27 31 Changes in Retained Earnings ASUS