Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Transaction Description of transaction June 1: Hudson Bloom invested $133,298,00 cash and computer equipment with a fair market value of S34,100.00 in his new business,

image text in transcribed
image text in transcribed
image text in transcribed
Transaction Description of transaction June 1: Hudson Bloom invested $133,298,00 cash and computer equipment with a fair market value of S34,100.00 in his new business, Byte of Accounting. June 1: Check # 5000 was used to purchased office equipment costing S638.00 from Office Express. The invoice number was 87417. 03. June 1: Check # 5001 was used to purchased computer equipment costing $11,000.00 from cielo trejo. The invoice number was 20117. June 2: Check # 5002 was used to make a down payment of $34,000.00 on additional computer equipment that we 04. purchased from Royce Computers, invoice number 76542. The full price of the computer was $170,000.00. A five year note was executed by Byte for the balance. June 4: Additional office equipment costing $700.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. 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 10: Check # 5003 was used to make a $26,000.00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer equipment for 0 $5,808.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. 09. June 16: A check in the amount of $7,750.00 was received for services performed for Pitman Pictures. 10 June 16: Byte purchased a building and the land it is on for $131,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $21,000.00. The balance of the cost ist be allocated to the building. Check # 5005 was used to make the down payment of $13,100.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance. Compi 11. June 17: Check # 5006 for $5,000.00 was paid for rent for June and July. 12. June 17: Received invoice number 26354 in the amount of $250.00 from the local newspaper for advertisine 13. June 21: Billed various miscellaneous local customers 54,100.00 for consulting services performed. June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express for $700.00. The invoice number was 975-328. 15. June 21: Accounts payable in the amount of $560.00 were paid with Check # 5007. 16. June 22: Check w 5010 was used to pay the advertising bill that was received on June 17. 17 June 22: Received a bill for $1,315.00 from Computer Parts and Repair Co. for repairs to the computer equipment The invoice number was 43254. June 22: Check # 5009 was used to pay salaries of $985.00 to equipment operators for the week ending June 18. Ignore payroll taxes. W 19. June 23: Cash in the amount of $3,285.00 was received on billings. 20. June 23: Purchased office supplies for $630.00 from Staples on account. The invoice number was 65498. 21. June 28: Billed S6,225.00 to miscellaneous customers for services performed to June 25. N 22. June 29: Cash in the amount of $5,899.00 was received for billings. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check #5011 June 29: Check # 5012 was used to pay salaries of $985.00 to equipment operators for the week ending June 25. ** Ignore payroll taxes. 25. June 30: Received a bill for the amount of $890.00 from O&G Oil and Gas Co. The invoice number was 784537 June 30: Check # 5013 was used to pay for airline tickets of $2,400.00 to send the kids to Grandma Ellen for the 26. "July 4th holiday. Adjusting Entries - Round to two decimal places. 27. The rent payment made on June 17 was for June and July. Expense the amount associated with one month's rent! 28. A physical inventory showed that only $259.00 worth of office supplies remained on hand as of June 30. The annual interest rate on the mortgage payable was 8.25 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. Record a journal entry to reflect that one half month's insurance has expired. 31. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $8,750 for the period of June 28-30. The fixed assets have estimated useful lives as follows: Building - 31.5 years Computer Equipment - 5.0 years 32. 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 $7,000. The office equipment hi a scrap value of $300. The computer equipment has no scrap value. Calculate the depreciation for one month. A review of the payroll records show that unpaid salaries in the amount of $591.00 are owed by Byte for three days, June 28 - 30. Ignore payroll taxes. The note payable to Royce Computers (transactions 04 and 07) 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. Closing Entries 35. Close the revenue accounts. 36. Close the expense accounts. 37. Close the income summary account. 38. Close the withdrawals account

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Auditing

Authors: O. Ray Whittington, Kurt Pany, Walter B. Meigs

12th Edition

ISBN: 0256167796, 978-0256167795

More Books

Students also viewed these Accounting questions

Question

Statutory law refers to written legislation. True or false

Answered: 1 week ago