Transaction Description of transaction June 1: Byte of Accounting, Inc, issued 2,660 shares of its common stock to Jeremy after $23,100 in cash and computer equipment with a fair market value of $32,760 were received. 01. 5 02. June 1: Byte of Accounting, Inc. issued 2,156 shares of its common stock after acquiring from Courtney $34,650 in cash, computer equipment with a fair market value of $10,080 and office equipment with a fair value of $546. 03. June 1: Byte of Accounting, Inc. acquired $50,400 in cash from Deja Bryant and issued 2,400 shares of its common stock 9 04. 10 11 June 2: A down payment of $35,000 in cash was made on additional computer equipment that was purchased for $175,000. A five-year note was executed by Byte for the balance June 4: Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation 05. 12 13 06 June 8: Unsatisfactory office equipment costing $100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 14 15 18 17 07. June 10: Byte paid $26,750 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 56,144 in cash. The effective date of the policy was June 16. 18 19 20 21 09 June 16: Computer consultation revenue of S7.750 was received 10 June 16: Byte purchased a building and the land it is on for $113,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $18,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $11,300 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 23 11 24 June 17: Cash of $5,000 was paid for rent for June and July. Put the total amount into the Prepaid Rent account 20 12 June 17. Received a bill of S325 from the local newspaper for advertising B 7 13. June 21: Billed various miscellaneous local customers $4,000 for consulting services performed. 8 29 14. June 21: A fax machine for the office was purchased for 5750 cash 30 31 32 33 15. June 21: Accounts payable in the amount of $400 were paid June 22: Paid the advertising bill that was received on June 17. 16. 35 17. June 22: Received a bill for $1,290 from Computer Parts and Repair Co. for repairs to the computer equipment 18 36 37 38 39 40 41 June 22: Paid salaries of 5985 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,205 was received on billings. 20 42 43 June 23: Purchased office supplies for S555 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed 56,225 to miscellaneous customers for services performed to June 25 45 48 22 June 29: Cash in the amount of $5,899 was received for billings 48 23 June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co 50 51 24 June 29: Paid salaries of S985 to equipment operators for the week ending June 25 25 June 30: Received a bill for the amount of 5940 from O&G Oil and Gas Co. 26. June 30: Paid a cash dividend of 50 24 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 55 Adjusting Entries - Round to two decimal places. 27 The rent payment made on June 17 was for lune and July Expense the amount associated with one mont's tent A physical inventory showed that only $225.00 worth of atrice supplies remained on hand as of June 30, Transactions 28. A physical inventory showed that only $225.00 worth of office supplies remained on hand as of June 30, 29. 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. 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 31. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $9,000 for the period of June 28-30 B6 87 68 59 32. 70 71 The fixed assets have estimated useful lives as follows: Building - 31.5 years Computer Equipment - 5.0 years Office Equipment -70 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 $7,500. The office equipment has a scrap value of $400. The computer equipment has no scrap value. Calculate the depreciation for one month. 72 73 33 74 A review of the payroll records show that unpaid salaries in the amount of 5591 are owed by Byte for three day, June 28 - 30. 34. 70 77 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 $140,000 On June 10, eight days later, 526,750 was repaid. Interest expense must be calculated on the S140,000 for eight days. In addition, interest expense on the S113.250 balance of the loan (S140,000 less S26,750 - 5113,250) must be calculated for the 20 days remaining in the month of June. 28 70 00 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 the balances which you can then transfer to the appropriate financial statement. 11 2 Closing Entries lome Insert Draw Page Layout Formulas Data Review View 79 x fx 33. B A review of the payroll records show that unpaid salaries in the amount of $391 are owed by Byte for three days, June 28 - 30. c 5 34. 6 2 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 $140,000 On June 10, eight days later, $26,750 was repaid. Interest expense must be calculated on the $140,000 for eight days. In addition, interest expense on the S113,250 balance of the loan (S140,000 less S26,750 - $113,250) must be calculated for the 20 days remaining in the month of June.) 78 79 0 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 81 82 B3 84 Closing Entries 85 36. Close the revenue accounts 37 Close the expense accounts B7 BS 89 00 38 Close the income summary account 39 Close the dividends account 1 92 03 95 DE 30 100 103 10 105 100 102 100 Transactions Page Layout Formulas Data Review View E A Byte of Accounting, Inc. General Journal Description Debat Credit 300widends Need a Destion June 154 Paid Rent Need a Destion Junta Suspense 20 Need a Diction Mad Descriton 30 21 MacBook Air 1 E G H D A Byte of Accounting, Inc. Income Statement For Month Ending June 30, 2021 Revenues Computer & Consulting Revenue 7 8 9 10 11 12 13 14 15 18 Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Ol & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Total Expenses 18 19 20 21 22 23 24 25 Net Income Before Tax Income Tax Expense Net Income After Tax 27 28 20 30 35 Join a incono si AutoSave Home Insert Draw Page Layout Formulas Data Review View A1 x fx B D E 1 2 3 4 A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 30, 2021 5 Total B 7 8 Balance Beginning of Period Net Income Dividends Balance, End of Period 10 11 12 13 14 15 10 17 18 19 20 21 22 23 24 2.5 20 27 28 10 32 25 E H D A Byte of Accounting, Inc. Balance Sheet As of June 30, 2021 Assets 7 8 9 10 Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total 12 13 14 15 18 20 21 Long-Term Assets Office Equi Accum. Depe-Office Equip Computer Equip Accum. Dep.Computer Equio Building Com Acom. Der Building Land Total Total Assets 23 24 27 20 30 32 14 05 Current Les Ante Paya Advanced Payment MacBo