Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. acquired $44,000 in cash from Lauryn and issued 2,000 shares of its common stock 02. June 1: Byte of Accounting, Inc. issued 2,580 shares of its common stock to Jermaine Scott after $23,540 in cash and computer equipment with a fair market value of $33,220 were received. 03. June 1: Byte of Accounting, Inc. issued 2,008 shares of its common stock after acquiring from Courtney $34,100 in cash, computer equipment with a fair market value of $9,240 and office equipment with a fair value of $836. 04. June 2: A down payment of $33,000 in cash was made on additional computer equipment that was purchased for $165,000. A five-year note was executed by Byte for the balance. 2 05. June 4: Additional office equipment costing $300 was purchased on credit from Discount Computer Corporation 3 11 06. June 8: Unsatisfactory office equipment costing $60 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 5 8 07. June 10: Byte paid $25,250 on the balance it owed on the June 2 purchase of computer equipment 7 GD 08. June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $5,136 in cash. The effective date of the policy was June 16. 9 1 09. June 16: A check in the amount of $6,000 was received for consulting revenue. 2 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. 24 11 June 17: Cash of S6,300 was paid for rent for June, July and August. Put the total amount into the Prepaid Rent account 25 28 Chart of Accounts Transactions General Journal Worksheet Income Staten A 12. June 17: Received a bill of $475 from the local newspaper for advertising 13. June 21: Accounts payable in the amount of $240 were paid. 14. June 21: A fax machine for the office was purchased for $725 cash. 15. June 21: Billed various miscellaneous local customers $4,800 for consulting services performed. 16. June 22: Paid salaries of $835 to equipment operators for the week ending June 18. 17. June 22: Received a bill for $1,190 from Computer Parts and Repair Co. for repairs to the computer equipment 18. June 22: Paid the advertising bill that was received on June 17. 19. June 23: Purchased office supplies for S680 on credit. Record the purchase as an increase to the assets. 20. June 23: Cash in the amount of $3,845 was received on billings. 21. June 28: Billed S5,910 to miscellaneous customers for services performed to June 25. 22. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 23. June 29: Cash in the amount of S5,600 was received for billings 24. June 29: Paid salaries of S835 to equipment operators for the week ending June 25. 2 25. June 30: Received a bill for the amount of S965 from O&G Oil and Gas Co. IT 26. June 30: Paid a cash dividend of S0.21 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.] 5 B 7 Adjusting Entries - Round to two decimal places. 27. The rent payment made on June 17 was for June, July and August Expense the amount associated with one month's rent 9 0 Chart of Accounts Transactions General Journal Worksheet Income 2 x fx Jermaine Scott 2631 A 28. A physical inventory showed that only $281.00 worth of office supplies remained on hand as of June 30. 29. The annual 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. 3 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 5 6 31. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $5,500 for the period of June 28-30 -7 32 59 TO 21 72 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 $350. The computer equipment has no scrap value. Calculate the depreciation for one month. 73 74 33 A review of the payroll records show that unpaid salaries in the amount of S501.00 are owed by Byte for three days, June 28 - 30. 75 78 34. 77 78 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 S106,750 balance of the loan (S132,000 less S25,250 - $106,750) must be calculated for the 20 days remaining in the month of June.] 79 B0 81 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.) 82 84 Closing Entries Chart of Accounts Transactions General Journal Worksheet Income State USE the OL12 34. 77 The note payable relating to the June 2, and 10 transactions is a five-year nole, 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, cight 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.] 78 79 80 81 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.) 82 83 84 Closing Entries 85 86 36. Close the revenue accounts. 87 88 37. Close the expense accounts. B9 90 38. Close the income summary account 39. Close the dividends account 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 100 109 Chart of Accounts Transactions General Journal . Worksheet Income Statement B H 1 E A Byte of Accounting, Inc. 2 General Joumal 3 Note: You can only enter det into the lowed calls Transaction Date Account Debit Creare Name Description 01 02 4 6 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 03 04 05 23 24 25 28 27 28 29 30 31 32 33 34 35 06 07 37 38 39 40 08 42 49 45 40 09 Chart of Accounts Transactions General Journal Worksheet Income Statement esc G B D A Byte of Accounting, Inc. General Joumal Note: You can only enter det let the yellow call ransaction Date Account Name Description Debit Credit 10 1 2 53 55 56 11 58 59 80 81 B2 12 13 14 15 64 65 88 67 BB 69 70 71 72 73 74 75 76 77 78 79 80 81 82 B3 B4 85 86 B7 88 89 90 91 92 16 17 18 Chart of Accounts Transactions General Journal Worksheet Income A B D 1 A Byte of Accounting, Inc. 2 General Joumal 3 Note: You can only ander det into the yellow calle Transaction Date Account Debit Credit 4 Name Description 20 21 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 22 23 120 24 25 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 138 137 26 27 Chart of Accounts Transactions General Journal Worksheet Income Statem F G H B D A Byte of Accounting, Inc. General Joumal Note: You can only enter det into the yellow calle Transaction Date Account Debit Credit Name Description 1 29 30 3 4 -5 -6 37 38 19 50 51 52 53 54 55 56 57 58 59 160 161 162 163 184 165 31 32 106 33 34 167 168 189 170 171 172 173 174 175 1760 177 178 179 180 181 102 183 35 36 Chart of Accounts Transactions General Journal Worksheet Income Statement G H B6 + x fx B D E 1 A Byte of Accounting, Inc. 2 General Joumal Note: You can only er det into the yellow calls. Transaction Date Account Debit Credit Name Description 4 TOS 184 185 186 187 188 37 189 190 191 192 193 194 39 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 Chart of Accounts Transactions General Journal Worksheet Income Stater A D E F G H Unadjusted Trial Balance Debl Crede Adjusting Entries Debt Credit Adjusted Trial Balance Debit Credit - - - - 5 6 Account 7 Number Name 8 1110 Cash 9 1120 Accounts Receivable 10 1130 Prepaid Insurance 11 1140 Prepaid Rent 12 1150 Office Supplies 13 1211 Office Equip. 14 1212 Acum, Depr.-Office Equip. 15 1311 Computer Equip 16 1312 Accum. Dapr. Computer Equip 17 1411 Building Cost 18 1412 Accum. Depr Building 19 1510 Land 20 2101 Accounts Payable 21 2102 Advanced Payments 22 2103 Interest Payable 23 2105 Salaries Payable 24 2106 Income Taxes Payable 25 2201 Mortgage Payable 26 2202 Notes Payable 27 3100 Capital Stock 28 3200 Retained Eamings 29 3300 Dividends 30 31 4100 Computer & Consulting Revenue 32 5010 Rent Expense 33 5020 Salary Expense 5030 Advertising Expense 35 5040 Repair & Maint Expense 5050 01 & Gas Expense 37 5080 Supplies Expense 38 5090 Interest Expense 39 5100 Insurance Expense 40 5110 Depreciation Expense 41 5120 Income Tax Expense 42 TOTAL 44 45 46 47 48 49 50 51 52 53 Chart of Accounts Transactions General Journal Worksheet Income Stateme E F H K - x x A B 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 Ol & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Total Net Income Before Tax Income Tax Expense Net Income Afer Tax Chart of Accounts Transactions General Journal Worksheet Income Statement X D B C A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending January 0, 1900 Total Balance, Beginning of Period Net Income Dividends Balance, End of Period 6 H B 1 2 A Byto of Accounting, Inc. Balance Sheet As of January 0, 1900 3 4 Asseta 5 6 7 8 9 10 Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total 12 13 114 15 16 17 18 20 21 Long-Term Assets Office Equip Accum Depr.-Office Equip. Computer Equip. Accur. Depr.-Computer Equip. Building Cost Accum. Depr.-Building Land Total Total Assets 23 24 26 27 28 29 30 31 32 Labilities +35 Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total 37 38 39 140 41 42 43 144 45 Long-Term Liabilities Mortgage Payable Notes Payable Total Total abilities Stockholder's Equity 48 40 30 51 2 Capital Stock Rotaned Earnings Tota Total Liabilities and Stockholder's Equity Chart Accounts Transactions General Journal Works