record transactions in general journal , closing entries , income statement, changes in retained earnings , create balance sheet

Description of transaction in cash and computer equipment with a fair market value of $41,310 were received. June 1: Byte of Accounting, Inc. issued 2,617 shares of its common stock after acquiring from 02. Courtney $55,350 in cash, computer equipment with a fair market value of $14,040 and office \begin{tabular}{l|l} 03. & June1:ByteofAccountingsharesofitscommonstock. \\ \hline \end{tabular} 04. June2:Adownpaymentof$33,000incashwasmadeonadditionalcomputerequipmentthatwaspurchasedfor$165,000.Afive- \begin{tabular}{l|l} 05. & June4:Additionalofficeequipmentcosting$300waspurchasedoncrediComputerCorporation. \end{tabular} 06. June8:Unsatisfactoryofficeequipmentcosting$60wasreturnedtoDiscountComputerforcredittobeappliedagzin 07. June 10: Byte paid $25,250 on the balance it owed on the June 2 purchase of computer equipment. 08. June14:Aone-yearinsurancepolicycoveringitscomputerequip$6,312incash.TheeffectivedateofthepolicywasJune16. 09. June 16: Computer consultation revenue of $7,250 was received. 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 $22,000. 10. 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 $3,600 was paid for rent for June and July. Put the total amount into the Prepaid 12. June 17: Received a bill of $400 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,500 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $775 cash. 15. June 21: Accounts payable in the amount of $240 were paid. 34. 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 $132,000. On June 10, eight days later, $25,250 was repaid. Interest expense must be calculated on the $132,000 for eight days. In addition, interest expense on the $106,750 balance of the loan ($132,000 less $25,250=$106,750) must be calculated for the 20 days remaining in the month of June.] 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 contain 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. 38. Close the income summary account. 39. Close the dividends account. A Byte of Accounting, inc. Worksheet For Perlod Ending June 30, 2023 Description of transaction in cash and computer equipment with a fair market value of $41,310 were received. June 1: Byte of Accounting, Inc. issued 2,617 shares of its common stock after acquiring from 02. Courtney $55,350 in cash, computer equipment with a fair market value of $14,040 and office \begin{tabular}{l|l} 03. & June1:ByteofAccountingsharesofitscommonstock. \\ \hline \end{tabular} 04. June2:Adownpaymentof$33,000incashwasmadeonadditionalcomputerequipmentthatwaspurchasedfor$165,000.Afive- \begin{tabular}{l|l} 05. & June4:Additionalofficeequipmentcosting$300waspurchasedoncrediComputerCorporation. \end{tabular} 06. June8:Unsatisfactoryofficeequipmentcosting$60wasreturnedtoDiscountComputerforcredittobeappliedagzin 07. June 10: Byte paid $25,250 on the balance it owed on the June 2 purchase of computer equipment. 08. June14:Aone-yearinsurancepolicycoveringitscomputerequip$6,312incash.TheeffectivedateofthepolicywasJune16. 09. June 16: Computer consultation revenue of $7,250 was received. 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 $22,000. 10. 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 $3,600 was paid for rent for June and July. Put the total amount into the Prepaid 12. June 17: Received a bill of $400 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,500 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $775 cash. 15. June 21: Accounts payable in the amount of $240 were paid. 34. 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 $132,000. On June 10, eight days later, $25,250 was repaid. Interest expense must be calculated on the $132,000 for eight days. In addition, interest expense on the $106,750 balance of the loan ($132,000 less $25,250=$106,750) must be calculated for the 20 days remaining in the month of June.] 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 contain 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. 38. Close the income summary account. 39. Close the dividends account. A Byte of Accounting, inc. Worksheet For Perlod Ending June 30, 2023