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Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2,590 shares of its common stock to Jeremy after $22,260 in cash and
Transaction | Description of transaction |
01. | June 1: Byte of Accounting, Inc. issued 2,590 shares of its common stock to Jeremy after $22,260 in cash and computer equipment with a fair market value of $32,130 were received. |
02. | June 1: Byte of Accounting, Inc. issued 2,193 shares of its common stock after acquiring from Courtney $36,750 in cash, computer equipment with a fair market value of $8,820 and office equipment with a fair value of $483. |
03. | June 1: Byte of Accounting, Inc. acquired $54,600 in cash from garrett blackwell and issued 2,600 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. |
05. | June 4: Additional office equipment costing $400 was purchased on credit from Discount Computer Corporation. |
06. | June 8: Unsatisfactory office equipment costing $80 was returned 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 $5,640 in cash. The effective date of the policy was June 16. |
09. | June 16: Computer consultation revenue of $7,500 was received. |
10. | 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. 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 $6,600 was paid for rent for June, July and August. Put the total amount into the Prepaid Rent account. |
12. | June 17: Received a bill of $475 from the local newspaper for advertising. |
13. | June 21: Billed various miscellaneous local customers $4,100 for consulting services performed. |
14. | June 21: A fax machine for the office was purchased for $850 cash. |
15. | June 21: Accounts payable in the amount of $320 were paid. |
16. | June 22: Paid the advertising bill that was received on June 17. |
17. | June 22: Received a bill for $1,215 from Computer Parts and Repair Co. for repairs to the computer equipment. |
18. | June 22: Paid salaries of $810 to equipment operators for the week ending June 18. |
19. | June 23: Cash in the amount of $3,285 was received on billings. |
20. | June 23: Purchased office supplies for $505 on credit. Record the purchase as an increase to the assets. |
21. | June 28: Billed $5,280 to miscellaneous customers for services performed to June 25. |
22. | June 29: Cash in the amount of $5,001 was received for billings. |
23. | June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. |
24. | June 29: Paid salaries of $810 to equipment operators for the week ending June 25. |
25. | June 30: Received a bill for the amount of $890 from O & G Oil and Gas Co. |
26. | June 30: Paid a cash dividend of $0.15 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.] |
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