Question
Transaction Description of transaction 01. June 1: Lauryn made an investment in Byte of Accounting, Inc. by purchasing 4,250 shares of its common stock for
| Transaction | Description of transaction |
| 01. | June 1: Lauryn made an investment in Byte of Accounting, Inc. by purchasing 4,250 shares of its common stock for $127,542.50 cash. The par value of the common stock was $0.01 per share. |
| 02. | June 1: Bria White made an investment in Byte of Accounting, Inc., by purchasing 2,550 shares of its common stock paying $30,910.30 in cash and by contributing computer equipment with a fair market value of $45,615.20. The par value of the common stock was $0.01 per share. |
| 03. | June 1: Courtney made an investment in Byte of Accounting, Inc., by purchasing 567 shares of its common stock by contributing computer equipment with a fair market value of $15,605.20 and office equipment with a fair value of $1,410.47. The par value of the common stock was $0.01 per share. |
| 04. | June 2: Check # 5002 was used to make a down payment of $33,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $165,000.00. A five-year note was executed by Byte for the balance. |
| 05. | June 4: Additional office equipment costing $700.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. |
| 06. | June 8: Unsatisfactory office equipment costing $140.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. |
| 07. | June 8: Purchased office supplies for $1,700.00 from Staples on account. The invoice number was 61298. Included in the purchase was 10 units of Super RoutePro at a cost of $35.00 each. |
| 08. | June 10: Check # 5003 was used to make a $25,250.00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers. |
| 09. | June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer equipment for $6,312.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. |
| 10. | June 16: Checks in the amount of $6,750.00 were received for services performed for cash customers. |
| 11. | June 16: Byte purchased a building and the land it is on for $125,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $20,000.00. The balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $12,500.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance. |
| 12. | June 17: Check # 5006 for $6,400.00 was paid for rent of the office space for June, July, August and September. |
| 13. | June 17: Received invoice number 26354 in the amount of $375.00 from the local newspaper for advertising. |
| 14. | June 21: Accounts payable in the amount of $560.00 were paid with Check # 5007. |
| 15. | June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express for $775.00. The invoice number was 975-328. |
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Cornerstones of Financial and Managerial Accounting
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-1111879044
