| Transaction | Date | Accounts | Debit | Credit |
| 1.00 | June 1 | Cash | 127,542.50 | |
| | | Common stock (4250*0.01) | | 42.50 |
| | | Additional paid in capital - common stock (127542.5-42.5) | | 127,500.00 |
| | | | | |
| 2.00 | June 1 | Cash | 30,910.30 | |
| | | Computer Equipment | 45,615.20 | |
| | | Common stock (2550*0.01) | | 25.50 |
| | | Additional paid in capital - common stock (30910.3+45,615.20-25.5) | | 76,500.00 |
| | | | | |
| 3.00 | June 1 | Computer Equipment | 15,605.20 | |
| | | Office equipment | 1,410.47 | |
| | | Common stock (567*0.01) | | 5.67 |
| | | Additional paid in capital - common stock (15605.2+1,410.47-5.67) | | 17,010.00 |
| | | | | |
| 4.00 | June 2 | Computer Equipment | 165,000.00 | |
| | | Cash | | 33,000.00 |
| | | Notes payable | | 132,000.00 |
| | | | | |
| 5.00 | June 4 | Office equipment | 700.00 | |
| | | Accounts payable | | 700.00 |
| | | | | |
| 6.00 | June 8 | Accounts payable | 140.00 | |
| | | Office equipment | | 140.00 |
| | | | | |
| 7.00 | June 8 | Office supplies | 1,700.00 | |
| | | Accounts payable | | 1,700.00 |
| | | | | |
| 8.00 | June 10 | Notes payable | 25,250.00 | |
| | | Cash | | 25,250.00 |
| | | | | |
| 9.00 | June 14 | Prepaid Insurance | 6,312.00 | |
| | | Cash | | 6,312.00 |
| | | | | |
| 10.00 | June 16 | Cash | 6,750.00 | |
| | | Services revenue | | 6,750.00 |
| | | | | |
| 11.00 | June 16 | Building | 20,000.00 | |
| | | Land (125,000.00-20,000.00) | 105,000.00 | |
| | | Cash | | 12,500.00 |
| | | Mortgage payable (125,000.00-12500) | | 112,500.00 |
| | | | | |
| 12.00 | June 17 | Prepaid rent | 6,400.00 | |
| | | Cash | | 6,400.00 |
| | | | | |
| 13.00 | June 17 | Advertising expense | 375.00 | |
| | | Accrued expenses | | 375.00 |
| | | | | |
| 14.00 | June 21 | Accounts payable | 560.00 | |
| | | Cash | | 560.00 |
| | | | | |
| 15.00 | June 21 | Office Machines | 775.00 | |
| | | Cash | | 775.00 |
| | | | | |
| 16.00 | June 21 | Accounts receivable | 4,300.00 | |
| | | Services revenue | | 4,300.00 |
| | | | | |
| 17.00 | June 22 | Salaries expense | 810.00 | |
| | | Cash | | 810.00 |
| | | | | |
| 18.00 | June 22 | Repair expense | 1,165.00 | |
| | | Accrued expenses | | 1,165.00 |
| | | | | |
| 19.00 | June 22 | Accrued expenses | 375.00 | |
| | | Cash | | 375.00 |
| | | | | |
| 20.00 | June 23 | Office supplies | 850.00 | |
| | | Accounts payable | | 850.00 |
| | | | | |
| 21.00 | June 23 | Cash | 3,445.00 | |
| | | Accounts receivable | | 3,445.00 |
| | | | | |
| 22.00 | June 28 | Accounts receivable | 6,015.00 | |
| | | Services revenue | | 6,015.00 |
| | | | | |
| 23.00 | June 29 | Accrued expenses | 1,165.00 | |
| | | Cash | | 1,165.00 |
| | | | | |
| 24.00 | June 29 | Cash | 5,699.00 | |
| | | Accounts receivable | | 5,699.00 |
| | | | | |
| 25.00 | June 29 | Salaries expense | 810.00 | |
| | | Cash | | 810.00 |
| | | | | |
| 26.00 | June 30 | Utilities expense | 915.00 | |
| | | Accrued expenses | | 915.00 |
| | | | | |
| 27.00 | June 30 | Cash dividends (4250*0.22) | 935.00 | |
| | | Cash | | 935.00 |
| | | | | |
| 28.00 | June 30 | Cash dividends (2,550*0.22) | 561.00 | |
| | | Cash | | 561.00 |
| | | | | |
| 29.00 | June 30 | Cash dividends (567*0.22) | 124.74 | |
| | | Cash | | 124.74 |
Adjusting Entries - Round to two decimal places. 35. Building - 31.5 years Office Equipment - 7.0 years Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building's salvage value is $8,000.00. The office equipment has a salvage value of $450.00. Calculate the depreciation for one month using the straight-line method of depreciation. The rent payment made on June 17 was for June, July, August and September. Expense the amount associated with one month's rent. 30. 31. A physical inventory showed that only $358.00 worth of general office supplies remained on hand as of June 30. This did not include any of the Super RoutePro. There were 5 units of Super RoutePro on hand. We use FIFO to determine the valuation of the supplies. The Computer Equipment has an estimated useful life of 5.00 years. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The computer equipment's scrap value is $20,000.00. Calculate the depreciation for one month using the double declining method of depreciation. 36. 32. The annual interest rate on the mortgage payable was 7.50 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 37. A review of the payroll records show that unpaid salaries in the amount of $486.00 are owed by Byte for three days, June 28 - 30. Ignore payroll taxes. Record a journal entry to reflect that one half month's insurance has expired. 33. 34. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $15,125.00 for the period of June 28-30. The note payable to Royce Computers (transactions 04 and 08) 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 $132,000.00. On June 10, eight days later, $25,250.00 The Building and the Office Equipment have the following estimated useful lives: 38. was repaid. Interest expense must be Closing Entries 43. Close the revenue accounts. calculated on the $132,000.00 for eight days. In addition, interest expense on the $106,750.00 balance of the loan ($132,000.00 less $25,250.00 = $106,750.00) must be calculated for the 20 days remaining in the month of June.) 44. Close the expense accounts. 45. Close the income summary account. 39. Our CPA has informed us to estimate that 2.00% of Computer & Consulting Revenue will be uncollectable. 46. Close the dividends account. 40. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to increases cash. Please do these adjusting enteries 41. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to decreases cash. 42. 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.] Adjusting Entries - Round to two decimal places. 35. Building - 31.5 years Office Equipment - 7.0 years Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building's salvage value is $8,000.00. The office equipment has a salvage value of $450.00. Calculate the depreciation for one month using the straight-line method of depreciation. The rent payment made on June 17 was for June, July, August and September. Expense the amount associated with one month's rent. 30. 31. A physical inventory showed that only $358.00 worth of general office supplies remained on hand as of June 30. This did not include any of the Super RoutePro. There were 5 units of Super RoutePro on hand. We use FIFO to determine the valuation of the supplies. The Computer Equipment has an estimated useful life of 5.00 years. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The computer equipment's scrap value is $20,000.00. Calculate the depreciation for one month using the double declining method of depreciation. 36. 32. The annual interest rate on the mortgage payable was 7.50 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 37. A review of the payroll records show that unpaid salaries in the amount of $486.00 are owed by Byte for three days, June 28 - 30. Ignore payroll taxes. Record a journal entry to reflect that one half month's insurance has expired. 33. 34. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $15,125.00 for the period of June 28-30. The note payable to Royce Computers (transactions 04 and 08) 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 $132,000.00. On June 10, eight days later, $25,250.00 The Building and the Office Equipment have the following estimated useful lives: 38. was repaid. Interest expense must be Closing Entries 43. Close the revenue accounts. calculated on the $132,000.00 for eight days. In addition, interest expense on the $106,750.00 balance of the loan ($132,000.00 less $25,250.00 = $106,750.00) must be calculated for the 20 days remaining in the month of June.) 44. Close the expense accounts. 45. Close the income summary account. 39. Our CPA has informed us to estimate that 2.00% of Computer & Consulting Revenue will be uncollectable. 46. Close the dividends account. 40. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to increases cash. Please do these adjusting enteries 41. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to decreases cash. 42. 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.]
