Question
Transaction June 1: Byte of Accounting, Inc. acquired $69,000 in cash from Lauryn and issued 3,000 shares of its common stock. June 1: Byte of
Transaction
June 1: Byte of Accounting, Inc. acquired $69,000 in cash from Lauryn and issued 3,000 shares of its common stock.
June 1: Byte of Accounting, Inc. issued 2,620 shares of its common stock to Timothy after $25,530 in cash and computer equipment with a fair market value of $37,730 were received.
June 1: Byte of Accounting, Inc. issued 2,616 shares of its common stock after acquiring from Courtney $49,450 in cash, computer equipment with a fair market value of $10120 and office equipment with a fair value of $598.
June 2: A down payment of $28000 in cash was made on additional computer equipment that was purchased for $140000. A five-year note was executed by Byte for the balance.
June 4: Additional office equipment costing $400 was purchased on credit from Discount Computer Corporation.
June 8: Unsatisfactory office equipment costing $80 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte.
June 10: Byte paid $21500on the balance it owed on the June 2 purchase of computer equipment.
June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $4968 in cash. The effective date of the policy was June 16.
June 16: A check in the amount of $7,500 was received for consulting revenue.
June 16: Byte purchased a building and the land it is on for $119000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $19,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $11900 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1.
June 17: Cash of $4,400 was paid for rent for June and July. Put the total amount into the Prepaid Rent account.
June 17: Received a bill of $325 from the local newspaper for advertising.
June 21: Accounts payable in the amount of $320 were paid.
June 21: A fax machine for the office was purchased for $800 cash.
June 21: Billed various miscellaneous local customers $4400 for consulting services performed.
June 22: Paid salaries of $835 to equipment operators for the week ending June 18.
June 22: Received a bill for $1315 from Computer Parts and Repair Co. for repairs to the computer equipment.
June 22: Paid the advertising bill that was received on June 17.
June 23: Purchased office supplies for $705 on credit. Record the purchase as an increase to the assets.
June 23: Cash in the amount of $3,525 was received on billings.
June 28: Billed $5,385 to miscellaneous customers for services performed to June 25.
June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co.
June 29: Cash in the amount of $5,101 was received for billings.
June 29: Paid salaries of $835 to equipment operators for the week ending June 25.
June 30: Received a bill for the amount of $815 from O & G Oil and Gas Co.
June 30: Paid a cash dividend of $0.16 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.]
Adjusting entries
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started