Transacuon Tuescription or transaction 01. June 1: Byte of Accounting, Inc. issued 2,660 shares of its common stock to Jeremy after $31,360 in cash and computer equipment with a fair market value of $43,120 were received. 02. June 1: Byte of Accounting, Inc. issued 2,000 shares of its common stock after acquiring from Courtney $37,800 in cash, computer equipment with a fair market value of $16,800 and office equipment with a fair value of $1,400. 03. June 1: Byte of Accounting, Inc. acquired $67,200 in cash from Savanna Stauffer and issued 12,400 shares of its common stock 04. June 2: A down payment of 534,000 in cash was made on additional computer equipment that was purchased for $170,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $300 was purchased on credit from Discount Computer Corporation 06. June 8: Unsatisfactory office equipment costing $60 was retumed to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $26,000 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 $6,312 in cash. The effective date of the policy was June 16. 09. June 16: Computer consultation revenue of $7,000 was received. 10. June 16: Byte purchased a building and the land it is on for $143,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $23,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $14,300 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 11. June 17: Cash of S6,000 was paid for rent for June, July and August. Put the total amount into the Prepaid Rent account 12. June 17: Received a bill of $350 from the local newspaper for advertising 13. June 21: Billed various miscellaneous local customers $4,600 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $650 cash 15. June 21: Accounts payable in the amount of $240 were paid. 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,090 from Computer Parts and Repair Co. for repairs to the computer equipment 18. June 22: Paid salaries of $1,010 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,685 was received on billings. 20. June 23: Purchased office supplies for $530 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed 56,120 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,799 was received for billings. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 24. June 29: Paid salaries of S1010 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $940 from O&G Oil and Gas Co. 26. June 30: Paid a cash dividend of 50.23 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 - 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. Polaylapu 28. A physical inventory showed that only $214.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 8.50 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. 31. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $5,000 for the period of June 28-30 32. 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 $7,500. The office equipment has a scrap value of $450. The computer equipment has no scrap value. Calculate the depreciation for one month. 33. A review of the payroll records show that unpaid salaries in the amount of S606 are owed byl Byte for three days, June 28 - 30. 34. 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 S136,000. On June 10, eight days later, 526,000 was repaid. Interest expense must be calculated on the S136,000 for eight days. In addition, interest expense on the $110.000 balance of the loan (5136,000 less $26,000 = $110,000) must be calculated for the 20 days remaining in the month of June.) 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.1 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.) Closing Entries 7 36. Close the revenue accounts. / 37. Close the expense accounts. 38. Close the income summary account. 20 39. Close the dividends account. Paraya 31 31 Jun 30 Jun 30 5,000.00 1120 Accounts Receivable unbilled revenue 4100 Computer & Consulting unbilled revenue 5,000.00 Jun 30 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense Building, office, computer depreciation 1412 Accum. Depr.-Building Building, office, computer depreciation 1212 Accum. Depr.-Office Building, office, computer depreciation 1312 Accum. Depr -Comput Building, office, computer depreciation I Y Jun 30 Jun 30 33 5020 Salary Expense 2105 Salaries Payable unpaid salary unpaid salary 34 34 Jun 30 Jun 30 5090 Interest Expense 2 103 Interest Payable interest expense interest expense Trancartions Jun 30 Jun 30 General lournal Worksheet 5120 Income Tax Expense income taxes 2106 Income Taxes Payable income taxes 35 Jun 30 Jun 30 4100 Computer & Consulting close the revenue account 3400 Income Summary close the revenue account Jun 30 ggggggggggg Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 3400|Income Summary close the expense account 5010 Rent Expense close the expense account 5020 Salary Expense close the expense account 5030 Advertising Expense close the expense account 5040 Repairs & Maint. Expe close the expense account 5050 Oil & Gas Expense close the expense account 5080 Supplies Expense close the expense account 5090 Interest Expenso close the expense account 5100 Insurance Expense close the expense account 5110 Depreciation Expense close the expense account 5120 Income Tax Expense close the expense account Jun 30 Jun 30 3400 Income Summary 3200 Retained Earnings close income summary close income summary 39 39 Jun 30 Jun 30 3200 Retained Earnings 3300 Dividends close dividend account close dividend account Luneduled since Adjusted Tid Dance Income Agusting Entries Credit Del mbar Name mo Cash RO Account Receive 02129 022420 1236.00 53120 6.000.00 50000 232000 4 000 00 T 22000 22000.00 000000 Predert hen Suches Tomice EU Acum procup Comez ER Accum Dep-Corrouter Eup Buiding Cost 1412 Acum Deoculong 610 Land 201 As Powe 2007 and Pamer 2003 er 26 Sales Payable 2005 Income Teen Pablo 20 Magga Poista 2200 Nos Poble 3100 Pack 3200 Bending 3300 Odends 22772900 Comuning en od Rent Expense 2000.00 FOO Advertising Expense 5010 Pepa Mapa SOGanun 5080 pple Experte 0000 506975