With the following transactions and adjusted entries, what would the worksheet looks like including the income statement and balance sheet.

Also I need help with recording adjusted journal entries #39-45.

Thank you in advance.

For Period Ending January 0, 1900 Account Unadjusted Trial Balance Number Name Debit Credit 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building Cost 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3110 Paid-in Capital in Excess of Par Value 3200 Retained Earnings 3300 Dividends 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5130 Bank Expense 5140 Telephone Expense 5150 Income Taxes Expense Total NET INCOME Balance 0 Adjusting Entries Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Adjusted Trial Balance Debit Credit 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Income Statement Debit Credit Balance Sheet Debit Credit June 1: Jeremy made an investment in Byte of Accounting, Inc., by purchasing 2,630 shares of its common stock paying $41,800 in cash and by contributing computer equipment with a fair market value of $58,140. The par value of the common stock was $22 per share. June 1: Courtney made an investment in Byte of Accounting, Inc., by purchasing 541 shares of its common stock by contributing computer equipment with a fair market value of $19,000 and office equipment with a fair value of $1,558. The par value of the common stock was $22 per share. June 1: LADAN OSMAN made an investment in Byte of Accounting, Inc. by purchasing 3,850 shares of its common stock for $146,300 cash. The par value of the common stock was $22 per share. June 2: Check # 5002 was used to make a down payment of $36,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $180,000.00. A five-year note was executed by Byte for the balance. June 4: Additional office equipment costing $500.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. June 8: Unsatisfactory office equipment costing $100.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. June 10: Check # 5003 was used to make a $27,500.00 payment reducing the prinicpal owed on the June 2 purchase of computer equipment from Royce Computers. June 10: 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 $40.00 each. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer equipment for $5,472.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. June 16: Checks in the amount of $8,760.00 was received for services performed for cash customers. June 16: Byte purchased a building and the land it is on for $119,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $19,000.00. The balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $11,900.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance. June 17: Check # 5006 for $4,600.00 was paid for rent for June and July. June 17: Received invoice number 26354 in the amount of $250.00 from the local newspaper for advertising. June 21: Billed various miscellaneous local customers $4,700.00 for consulting services performed. June 21: Check # 5007 was used to purchase a fax machine for the office from Office Machines Express for $850.00. The invoice number was 975-328. June 21: Accounts payable in the amount of $400.00 were paid with Check # 5008. June 22: Check # 5009 was used to pay the advertising bill that was received on June 17. June 22: Received a bill for $1,265.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254. June 22: Check # 5010 was used to pay salaries of $985.00 to equipment operators for the week ending June 18. Ignore payroll taxes. June 23: Cash in the amount of $3,765.00 was received on billings. June 23: Purchased office supplies for $850.00 from Staples on account. The invoice number was 65498. Included in the purchase was 10 units of Super RoutePro at a cost of $46.00 each. June 28: Billed $5,805.00 to miscellaneous customers for services performed to June 25. June 29: Cash in the amount of $5,500.00 was received for billings. 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. June 30: Received a bill for the amount of $990.00 from O & G Oil and Gas Co. The invoice number was 784537. June 30: Check # 5013 was used to pay for a cash dividend of $0.20 per share to Jeremy, a shareholder of Byte. June 30: Check # 5014 was used to pay for a cash dividend of $0.20 per share to LADAN OSMAN a shareholder of Byte. June 30: Check # 5015 was used to pay for a cash dividend of $0.20 per share to Courtney, a shareholder of Byte. Adjusting Entries - Round to two decimal places. The rent payment made on June 17 was for June and July. Expense the amount associated with one month's rent. A physical inventory showed that only $358.00 worth of general office supplies remained on hand as of June 30. This did not include any of the Super RoutePro. There were 5 units of Super RoutePro on hand. We use FIFO to determine the valuation of the supplies. The annual interest rate on the mortgage payable was 9.25 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. Record a journal entry to reflect that one half month's insurance has expired. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $15,375 for the period of June 28-30. The fixed assets have estimated useful lives as follows: The Building and the Office Equipment have the following estimated useful lives: Building - 31.5 years Office Equipment - 7.0 years Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building's salvage value is $8,000.00. The office equipment has a salvage value of $450.00. Calculate the depreciation for one month using the straight-line method of depreciation. The Computer Equipment has an estimated useful life of 5.00 years. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The computer equipment's scrap value is $20,000.00. Calculate the depreciation for one month using the double declining method of depreciation. 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. [IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $144,000.00. On June 10, eight days later, $27,500.00 was repaid. Interest expense must be calculated on the $144,000.00 for eight days. In addition, interest expense on the $116,500.00 balance of the loan ($144,000.00 less $27,500.00 = $116,500.00) must be calculated for the 20 days remaining in the month of June.] # 39. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to increases cash. #40. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to decreases cash. #41. Our CPA has informed us to estimate that 3.00% of Computer & Consulting Revenue will be uncollectable. #42. 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 #43. Close the revenue accounts. #44. Close the expense accounts. #45. Close the income summary account. Close the dividends account. A Byte of Accounting General Journal Transaction Date 1 1 1 1 Account 1-Jun Name Description Debit Credit 1110 Cash 1311 Computer Equip. 3100 Capital Stock 3110 Paid-in Capital in Excess Investment in stockshare Investment in stockshare Investment in stockshare Investment in stockshare 41800 58140 2 2 2 2 1211 Office Equip. 1311 Computer Equip. 3100 Capital Stock 3110 Paid-in Capital in Excess Investment in stockshare Investment in stockshare Investment in stockshare Investment in stockshare 1558 19000 3 3 3 1110 Cash Investment in stockshare 3100 Capital Stock Investment in stockshare 3110 Paid-in Capital in Excess Investment in stockshare 146300 1311 Computer Equip. 1110 Cash 2202 Notes Payable Purchased comp. equip.#76542 Purchased comp. equip.#76542 Purchased comp. equip.#76542 180000 1211 Office Equip. 2101 Accounts Payable Office equipment purchased#98432 Office equipment purchased#98432 500 2101 Accounts Payable 1211 Office Equip. Office equip. returned # 98432 Office equip. returned # 98432 100 2202 Notes Payable 1110 Cash Payment on Notes payable#76542 Payment on Notes payable#76542 1150 Office Supplies 2101 Accounts Payable Office supplies #61298 Office supplies #61298 1700 1130 Prepaid Insurance 1110 Cash Purchased one-year policy#2387 Purchased one-year policy#2387 5472 4 4 4 2-Jun 5 5 5-Jun 6 6 8-Jun 7 7 10-Jun 8 8 9 9 10-Jun 10 10 16-Jun 11 11 11 11 12 12 1411 Building 1510 Land 1110 Cash 2201 Mortgage Payable 21-Jun Purchased land and building Purchased land and building Purchased land and building Purchased land and building 1140 Prepaid Rent 1110 Cash Paid for rent June and July Paid for rent June and July 5030 Advertising Expense 2101 Accounts Payable 17-Jun 13 13 14 14 1110 Cash Revenue from services performed 4100 Computer & Consulting Revenue from services performed Advertising exp.bil l#26354 Advertising exp.bil l#26354 1120 Accounts Receivable Billed customers 4100 Computer & Consulting Billed customers 57860 42080 11902 8656 61600 84700 36000 144000 500 100 27500 27500 1700 5472 8760 8760 100000 19000 11900 107100 4600 4600 250 250 4700 4700 15 15 1211 Office Equip. 1110 Cash Purchased fax machine #975-328 Purchased fax machine #975-328 850 16 2101 Accounts Payable Paid account payable 400 850 16 1110 Cash 17 17 22-Jun 18 18 22-Jun 19 19 20 20 Paid account payable 2101 Accounts Payable 1110 Cash Advertising expense paid Advertising expense paid 5040 Repairs & Maint. ExpenseBill received for repaire &maint.#43 2101 Accounts Payable Bill received for repaire &maint.#43254 5020 Salary Expense 1110 Cash 21 21 22 22 28-Jun 23 23 29-Jun 1110 Cash 1120 Accounts Receivable Cash received on billing Cash received on billing 1150 Office Supplies 2101 Accounts Payable 23-Jun Paid salary expense Paid salary expense Purchase office supplies#65498 Purchase office supplies#65498 400 250 250 1265 1265 985 985 3765 3765 850 850 1120 Accounts Receivable Billed customers for services 4100 Computer & Consulting Billed customers for services 5805 1110 Cash 1120 Accounts Receivable Cash received on billings Cash received on billings 5500 24 24 2101 Accounts Payable 1110 Cash Paid bill for repais Paid bill for repais 1265 25 25 5020 Salary Expense 1110 Cash paid salary exp.to equip.operator paid salary exp.to equip.operator 985 5050 Oil & Gas Expense 2101 Accounts Payable Received bill for oil&gas exp.#78453 Received bill for oil&gas exp.#784537 990 27 27 3300 Dividends 1110 Cash Paid cash dividends to shareholder 526 Paid cash dividends to shareholder Jeremy 526 28 28 3300 Dividends 1110 Cash paid cash dividends to shareholder 770 paid cash dividends to shareholder Ladan 770 29 29 3300 Dividends 1110 Cash paid cash dividends to shareholder 108.2 paid cash dividends to shareholder courtney 108.2 5010 Rent Expense 1140 Prepaid Rent Adjusted for rent expense Adjusted for rent expense 2300 2300 5080 Supplies Expense 1150 Office Supplies Adjusted for used office supplies Adjusted for used office supplies 1962 5090 Interest Expense 2103 Interest Payable accum. Interst on mortgage note accum. Interst on mortgage note 412.78 26 26 30-Jun 5805 5500 1265 985 990 Adjusted Entries- Rounded two decimal places 30 30 30-Jun 42185 31 31 0 32 32 1962 412.78 33 33 5100 Insurance Expense 1130 Prepaid Insurance 1/2 month of insurance expired 1/2 month of insurance expired 34 34 1120 Accounts Receivable Billings for services 4100 Computer & Consulting Billings for services 15375 35 35 35 5110 Depreciation Expense Adjusted for accum. Depreciation 1212 Accum. Depr.-Office Equip Adjusted for accum. Depreciation 1412 Accum. Depr.-Building Adjusted for accum. Depreciation 271.46 36 36 5110 Depreciation Expense Adjusted for accum. Depreciation 1312 Accum. Depr.-Computer EAdjusted for accum. Depreciation 8571.33 37 37 5020 Salary Expense 2105 Salaries Payable Recorded unpaid salary expense Recorded unpaid salary expense 38 38 5090 Interest Expense 2103 Interest Payable Interest on note payable Royce Interest on note payable Royce 39 39 1110 Cash 5130 Bank Expense Need a Description 40 40 5130 Bank Expense 1110 Cash Need a Description 41 41 5120 Bad Debt Expense Uncollectable revenue 4100 Computer & Consulting Uncollectable revenue 42 42 5150 Income Tax Expense 2106 Income Taxes Payable 43 43 4100 Computer & Consulting Closing revenue acct. 3400 Income Summary Closing revenue acct. income tax income tax 44 45 46 46 3200 Retained Earnings 3300 Dividends Closig dividends Closig dividends 228 228 15375 28.07 243.39 8571.33 591 591 1160.67 1160.67 1039.2 1039.2 4888.89 4888.89 30790.31 30790.31 \f39. Journal entry required to increase cash Date 30 June Transaction details Cash receipts Accounts details Cash Debit 206,125.00 Advance receipts Credit 206,125.00 40. Journal entry required to decrease cash Date 30 June Transaction details Cash payments n June Accounts details Advance payments Debit 91,211.20 Cash Credit 91,211.20 41. Estimated uncollectable 3.00% of Computer & Consulting Revenue Date 30 June Transaction details Estimated uncollectable debts Accounts details Bad debts Computer Consulting Revenue Debit 1,039.50 Credit 1,039.50 42. Income taxes are to be computed at the rate of 25 percent of net income before taxes Date 30 June Transaction details Income taxes on net income Accounts details Income tax expense Income tax payable Debit Credit 3,641.98 3,641.98 Closing Entries 43. Revenue account Date 30 June Transaction details Revenue from the business 44. Expense account Account Revenue Account Income Summary Debit Credit 34,640.00 34,640.00 Date Transaction Account Debit 30 June details Expenses for the Income Summary 20,072.07 period Advertising Credit 250.00 Repairs & maintenance 1,265.00 Insurance 223.00 Office rent 2,300.00 Salary expenses 2,562.00 Oil & gas expenses 990.00 Depreciation expenses-computers 8,571.33 Depreciation expenses-building 271.46 Interest expenses 412.78 Bad debts 1,039.50 Office supplies 2,187.00 45. Income summary account Date 30 June Transaction details Income before tax Account Income Summary Debit Credit 14,567.93 Retained earnings 14,567.93 46. Dividend account Date 30 June Transaction details Dividend declared and paid Account Retained earnings Dividend Debit 1,404.2 Credit 1,404.20 Workings: a. Office supplies Billings billed Balance at close of the period Supplies consumed 2,550.00 363.00 2,187.00 Super RoutePro is part of the supplies included in supplies b. Insurance Annual payment 5,472 Monthly payment (5,472/12) 456 Half month 228 c. Salaries Paid (985x2) 1,970.00 Arrears 591.00 Total 2,561.00 Interest: 20 x 30 8 116,500 x 12 x 30 144,000 12 12 = 776.67 = 384.00 = 1,160.67 100 x 12 100 Total Cash Decrease Check No. Amount 502 36,000.00 503 27,500.00 504 5,472.00 505 11,900.00 506 4,600.00 507 850.00 508 250.00 509 985.00 510 1,265.00 511 985.00 512 526.00 513 770.00 514 108.20 Total 91,211.20 Building Blocks of Accounting .. A Financial Perspective LADAN, when you are ready to have your work graded you will upload this file LO2348.xls to the same screen that the project was downloaded from: www.cybertext.com, The Book List, Building Blocks of Accounting .. A Financial Perspective, Enter password, Upload Your Excel File. Keep two copies of your spreadsheet in two separate places in case one does not work. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. F911 150126 or LO2348.xlsx, Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Page 1 FAQ FAQ 01 My file used to upload, why is it not uploading? Answer: Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version Somehow clean the files and they then upload without problem. If the problem continue simple send your file as an attachment with your username and password...friedman@cybertext.com Windows Operating System Select File Select Save As Select Save As Type: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xls file Save As Save As Type: Excel Workbook (*.xlsx) Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xls file Save As Format: Excel Workbook (*.xlsx) Save Excel 5.0/95 Workbook (.xls) Upload the file at cybertext.com Elf Village Productions MF1234.xlsx 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 02 When I try to enter information in the General Journal why does an error appears indicating that the cell protected? Page 2 Answer: The computer program is designed to save you time. Instead of requiring you to enter the description four times the program automatically copies the description when you enter a new account number. This process requires that the data entry is limited to those cells which contain unique information. The cells that you can enter data into are the yellow filled cells. FAQ 03 In the feedback section, what does it mean when I have points under reverse? Answer: If you pay a telephone expense of $100.00 Telephone Expense 100 Cash 100 If you debit cash and credit telephone expense you have reversed the whole entry. Cash 100 Telephone Expense 100 If you debit cash and credit anything else you have reversed part of the entry. Cash 100 Rent Expense Elf Village Productions 100 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 04 How does my instructor get my grade? Answer: Every time you upload your grade is recorded in a table. Your instructor can look at the table whenever they want to, although only the last grade counts. Keep a hard copy of your last upload for documentation. FAQ 05 I have entered all the transactions and have completed the worksheet however I get following message on the financial statements: "You must finish the worksheet before you can complete the ...." Answer: The worksheet demonstrates that the accounting system is working. If all of your journal entries are in balance then the Unadjusted Trial Balance and the Adjusting Entry columns will balance. The Adjusted Trial Balance columns net the Unadjusted Trial Balance and the Adjusting Entry columns. There are four steps to completing the worksheet: 1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the Balance Sheet columns, (debits remain debits and credits remain credits). 2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses. 3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet. 4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise there is an error in the completion of the worksheet. Page 3 Building Blocks of Accounting -- A Financial Perspective The instructions start on row 22 of this page. FIRST LADAN LAST OSMAN SS 2348 File LO2348 Welcome to the world's first ePractice case, an individualized, internet generated and graded case study that focuses on the analytically portion of the accounting cycle while automating the repetitive posting cycle. NOTE: If the program is not working e-mail markfriedman@miami.edu, 305.284.6296. Step I - The Chart of Accounts The chart of accounts includes all of the accounts that you can use to solve your case. You may want to print the chart of accounts and use it as an easy reference guide. Step II - Journalizing the Transactions. Using your unique transactions record the corresponding general journal entry, rounding to two decimal places. For example, 01 June 1: Hudson Bloom made a $40,000 cash investment in his business, Byte of Accounting. 01 Jun 01 C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n In the date field enter the date of the transaction. If you do not enter a date value an error message will appear. Cash 01 Jun 01 C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n In the account field enter the account number that corresponds to the account in the chart of accounts. You can also use the pull down list to find the appropriate account number. If you use a number that is not on the chart of accounts an error message will appear. 1110 Cash The name of the account will automatically appear in the name column. If it is the wrong account renter the correct account number. 01 Jun 01 1110 Cash C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n Enter the description in the description field. Hudson's investment Transaction # 1 Not in Balance by $40,000. 01 Jun 01 1110 Cash Hudson's investment 40,000.00 C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n Enter the amount in the debit field. C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n Enter the second account number. Transaction # 1 Not in Balance by $40,000. 01 01 Jun 01 Jun 01 1110 Cash 3100 Capital Stock Hudson's investment 40,000.00 Hudson's investment 01 Jun 01 1110 Cash 3100 Capital Stock Hudson's investment Hudson's investment C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n Enter the amount in the credit field. 40,000.00 40,000.00 Step III - Worksheet Although not graded, you need to complete the Worksheet. If each of your journal entries are in balance then your Unadjusted Trial Balance, the Adjusting Entry and Adjusted Trial Balance columns will be in balance. 1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the Balance Sheet columns, (debits remain debits and credits remain credits). 2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses. 3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet. 4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise there is an error in the completion of the worksheet. Step IV - Prepare the Financial Statements. Press Here To Create After you have entered all of the transactions and prepared the Worksheet, you are to prepare the Income The General Ledger Statement, Shareholder's Equity Statement and Balance Sheet using the forms provided. Step V - Prepare the Closing Entries. Based upon the information from your Worksheet or from your Financial Statements, prepare the closing entries. Step VI - Upload the File. Whenever you want to have cybertext.com grade your work submit it to them on the bottom of the screen that you downloaded the file. Grading: You will be graded on the Journal Entries and the three financial statement. The case will be computer graded, therefore make sure all numbers are in the appropriate cells. The computer will evaluate your transactions when grading your financial statements. Note: Save and make backup copies regularly. Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3110 Paid-in Capital in Excess of Par Value 3200 Retained Earnings 3300 Dividends 3400 Income Summary 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5130 Bank Expense 5140 Telephone Expense 5150 Income Tax Expense Normal Balance Debit Debit Credit Debit Debit Debit Debit Credit Debit Credit Debit Credit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Error # 1 2 4 8 16 32 64 128 256 512 1024 Message Debit And Credit On Same Line Debit Before Credit Need An Account Number Round To Two Decimal Places Need a Description Need a Date Byte of Accounting LADAN OSMAN 2503 Transaction Description of transaction June 1: Jeremy made an investment in Byte of Accounting, Inc., by purchasing 2,630 shares of its stock paying $41,800 in cash and by contributing computer equipment with a fair market value of $58,140. The par value of the common stock was $22 per share. 01. common June 1: Courtney made an investment in Byte of Accounting, Inc., by purchasing 541 shares of its stock by contributing computer equipment with a fair market value of $19,000 and office equipment with a fair value of $1,558. The par value of the common stock was $22 per share. 02. common 03. June 1: LADAN OSMAN made an investment in Byte of Accounting, Inc. by purchasing 3,850 shares of its common stock for $146,300 cash. The par value of the common stock was $22 per share. June 2: Check # 5002 was used to make a down payment of $36,000.00 on additional computer Royce Computers, invoice number 76542. The full price of the computer was $180,000.00. A five-year note was executed by Byte for the balance. 04. equipment that was purchased from 05. June 4: Additional office equipment costing $500.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. 06. June 8: Unsatisfactory office equipment costing $100.00 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 $27,500.00 payment reducing the prinicpal owed on the June 2 purchase of computer equipment from Royce Computers. 08. June 10: 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 $40.00 each. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer $5,472.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. 09. equipment for 10. June 16: Checks in the amount of $8,760.00 was received for services performed for cash customers. June 16: Byte purchased a building and the land it is on for $119,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $19,000.00. The 11. balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $11,900.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance. 12. June 13. June 17: Received invoice number 26354 in the amount of $250.00 from the local newspaper for advertising. 14. June 15. 17: Check # 5006 for $4,600.00 was paid for rent for June and July. 21: Billed various miscellaneous local customers $4,700.00 for consulting services performed. June 21: Check # 5007 was used to purchase a fax machine for the office from Office Machines Express for $850.00. The invoice number was 975-328. 16. June 21: Accounts payable in the amount of $400.00 were paid with Check # 5008. 17. June 22: Check # 5009 was used to pay the advertising bill that was received on June 17. 18. June 22: Received a bill for $1,265.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254. 19. June 22: Check # 5010 was used to pay salaries of $985.00 to equipment operators for the week ending June 18. Ignore payroll taxes. 20. June 21. 23: Cash in the amount of $3,765.00 was received on billings. June 23: Purchased office supplies for $850.00 from Staples on account. The invoice number was 65498. Included in the purchase was 10 units of Super RoutePro at a cost of $46.00 each. 22. June 28: Billed $5,805.00 to miscellaneous customers for services performed to June 25. 23. June 29: Cash in the amount of $5,500.00 was received for billings. 24. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011. 25. June 29: Check # 5012 was used to pay salaries of $985.00 to equipment operators for the week ending June 25. Ignore payroll taxes. 26. June 30: Received a bill for the amount of $990.00 from O & G Oil and Gas Co. The invoice number was 784537. 27. June 30: Check # 5013 was used to pay for a cash dividend of $0.20 per share to Jeremy, a shareholder of Byte. 28. June 30: Check # 5014 was used to pay for a cash dividend of $0.20 per share to LADAN OSMAN a shareholder of Byte. 29. June 30: Check # 5015 was used to pay for a cash dividend of $0.20 per share to Courtney, a shareholder of Byte. Adjusting Entries - Round to two decimal places. 30. The rent payment made on June 17 was for June and July. Expense the amount associated with one month's rent. A physical inventory showed that only $358.00 worth of general office supplies remained on hand as of 30. This did not include any of the Super RoutePro. There were 5 units of Super RoutePro on hand. We use FIFO to determine the valuation of the supplies. 31. June 32. The annual interest rate on the mortgage payable was 9.25 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 33. Record a journal entry 34. to reflect that one half month's insurance has expired. A review of Byte's job worksheets show that there are unbilled revenues in the amount of $15,375 for the period of June 28-30. The fixed assets have estimated useful lives as follows: The Building and the Office Equipment have the following estimated useful lives: 35. Building - 31.5 years Office Equipment - 7.0 years Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The building's salvage value is $8,000.00. The office equipment has a salvage value of $450.00. Calculate the depreciation for one month using the straight-line method of depreciation. The Computer Equipment has an estimated useful life of 5.00 years. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The computer equipment's scrap value is $20,000.00. Calculate the depreciation for one 36. month using the double declining method of depreciation. 37. 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. 38. [IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $144,000.00. On June 10, eight days later, $27,500.00 was repaid. Interest expense must be calculated on the $144,000.00 for eight days. In addition, interest expense on the $116,500.00 balance of the loan ($144,000.00 less $27,500.00 = $116,500.00) must be calculated for the 20 days remaining in the month of June.] 39. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to increases cash. 40. Based on the information on the "Bank Reconciliation" sheet prepare the journal entry required to decreases cash. 41. Our CPA has informed us to estimate that 3.00% of Computer & Consulting Revenue will be uncollectable. 42. 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 43. Close the revenue accounts. 44. Close the expense accounts. 45. Close the income summary account. 46. Close the dividends account. A Byte of Accounting General Journal al an ce 01 01 01 01 Jun 01 Jun 01 Jun 01 Jun 01 1110 Cash Investment in stockshare 1311 Computer Equip. Investment in stockshare 3100 Capital Stock Investment in stockshare 3110 Paid-in Capital in Excess Investment in stockshare 41,800.00 58,140.00 02 02 02 02 Jun 01 Jun 01 Jun 01 Jun 01 1211 Office Equip. Investment in stockshare 1311 Computer Equip. Investment in stockshare 3100 Capital Stock Investment in stockshare 3110 Paid-in Capital in Excess Investment in stockshare 1,558.00 19,000.00 03 03 03 Jun 01 Jun 01 Jun 01 1110 Cash Investment in stockshare 3100 Capital Stock Investment in stockshare 3110 Paid-in Capital in Excess Investment in stockshare 146,300.00 04 04 04 Jun 02 Jun 02 Jun 02 1311 Computer Equip. 1110 Cash 2202 Notes Payable Purchased comp. equip.#76542 Purchased comp. equip.#76542 Purchased comp. equip.#76542 180,000.00 05 05 Jun 04 Jun 04 1211 Office Equip. 2101 Accounts Payable Office equipment purchased#98432 Office equipment purchased#98432 500.00 06 06 Jun 08 Jun 08 2101 Accounts Payable 1211 Office Equip. Office equip. returned # 98432 Office equip. returned # 98432 100.00 07 07 Jun 10 Jun 10 2202 Notes Payable 1110 Cash Payment on Notes payable#76542 Payment on Notes payable#76542 08 08 Jun 10 Jun 10 1150 Office Supplies 2101 Accounts Payable Office supplies #61298 Office supplies #61298 1,700.00 09 09 Jun 14 Jun 14 1130 Prepaid Insurance 1110 Cash Purchased one-year policy#2387 Purchased one-year policy#2387 5,472.00 10 10 Jun 16 Jun 16 1110 Cash Revenue from services performed 4100 Computer & Consulting Revenue from services performed 11 11 11 11 Jun 16 Jun 16 Jun 16 Jun 16 1411 Building 1510 Land 1110 Cash 2201 Mortgage Payable Purchased land and building Purchased land and building Purchased land and building Purchased land and building 12 12 Jun 17 Jun 17 1140 Prepaid Rent 1110 Cash Paid for rent June and July Paid for rent June and July 13 13 Jun 17 Jun 17 5030 Advertising Expense 2101 Accounts Payable Advertising exp.bil l#26354 Advertising exp.bil l#26354 14 14 Jun 21 Jun 21 1120 Accounts Receivable Billed customers 4100 Computer & Consulting Billed customers 15 15 Jun 21 Jun 21 1211 Office Equip. 1110 Cash Purchased fax machine #975-328 Purchased fax machine #975-328 850.00 16 16 Jun 21 Jun 21 2101 Accounts Payable 1110 Cash Paid account payable Paid account payable 400.00 17 17 Jun 22 Jun 22 2101 Accounts Payable 1110 Cash Advertising expense paid Advertising expense paid 250.00 18 18 Jun 22 Jun 22 5040 Repairs & Maint. Expens Bill received for repaire &maint.#4325 2101 Accounts Payable Bill received for repaire &maint.#43254 To ta lB Description C re di t Name D eb it ou nt A cc D at e Tr a ns ac tio n Note: You can only enter data into the yellow filled cells. 57,860.00 42,080.00 41800 58140 (57860) (42080) 0 0 0 0 11,902.00 8,656.00 1558 19000 (11902) (8656) 0 0 0 0 61,600.00 84,700.00 146300 (61600) (84700) 0 0 0 0 0 36,000.00 144,000.00 180000 (36000) (144000) 0 0 0 0 0 500 (500) 0 0 0 0 0 0 100 (100) 0 0 0 0 0 0 27500 (27500) 0 0 0 0 0 0 1700 (1700) 0 0 0 0 0 0 5472 (5472) 0 0 0 0 0 0 8760 (8760) 0 0 0 0 0 0 100000 19000 (11900) (107100) 0 0 0 0 4600 (4600) 0 0 0 0 0 0 250 (250) 0 0 0 0 0 0 4700 (4700) 0 0 0 0 0 0 850 (850) 0 0 0 0 0 0 400 (400) 0 0 0 0 0 0 250 (250) 0 0 0 0 0 0 1265 (1265) 0 0 500.00 100.00 27,500.00 27,500.00 1,700.00 5,472.00 8,760.00 8,760.00 100,000.00 19,000.00 11,900.00 107,100.00 4,600.00 4,600.00 250.00 250.00 4,700.00 4,700.00 850.00 400.00 250.00 1,265.00 1,265.00 A Byte of Accounting General Journal al an ce To ta lB Description C re di t Name D eb it ou nt A cc D at e Tr a ns ac tio n Note: You can only enter data into the yellow filled cells. 0 0 19 19 Jun 22 Jun 22 5020 Salary Expense 1110 Cash Paid salary expense Paid salary expense 985.00 20 20 Jun 23 Jun 23 1110 Cash 1120 Accounts Receivable Cash received on billing Cash received on billing 21 21 Jun 23 Jun 23 1150 Office Supplies 2101 Accounts Payable Purchase office supplies#65498 Purchase office supplies#65498 22 22 Jun 28 Jun 28 1120 Accounts Receivable Billed customers for services 4100 Computer & Consulting Billed customers for services 5,805.00 23 23 Jun 29 Jun 29 1110 Cash 1120 Accounts Receivable Cash received on billings Cash received on billings 5,500.00 24 24 Jun 29 Jun 29 2101 Accounts Payable 1110 Cash Paid bill for repais Paid bill for repais 1,265.00 25 25 Jun 29 Jun 29 5020 Salary Expense 1110 Cash paid salary exp.to equip.operator paid salary exp.to equip.operator 985.00 26 26 Jun 30 Jun 30 5050 Oil & Gas Expense 2101 Accounts Payable Received bill for oil&gas exp.#784537 Received bill for oil&gas exp.#784537 990.00 27 27 Jun 30 Jun 30 3300 Dividends 1110 Cash Paid cash dividends to shareholder J 526.00 Paid cash dividends to shareholder Jeremy 526.00 28 28 Jun 30 Jun 30 3300 Dividends 1110 Cash paid cash dividends to shareholder L 770.00 paid cash dividends to shareholder Ladan 770.00 29 29 Jun 30 Jun 30 3300 Dividends 1110 Cash paid cash dividends to shareholder c 108.20 paid cash dividends to shareholder courtney 108.20 30 30 Jun 30 Jun 30 5010 Rent Expense 1140 Prepaid Rent Adjusted for rent expense Adjusted for rent expense 2,300.00 31 31 Jun 30 Jun 30 5080 Supplies Expense 1150 Office Supplies Adjusted for used office supplies Adjusted for used office supplies 1,962.00 32 32 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable accum. Interst on mortgage note accum. Interst on mortgage note 412.78 33 33 Jun 30 Jun 30 5100 Insurance Expense 1130 Prepaid Insurance 1/2 month of insurance expired 1/2 month of insurance expired 228.00 34 34 Jun 30 Jun 30 1120 Accounts Receivable Billings for services 4100 Computer & Consulting Billings for services 35 35 35 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense Adjusted for accum. Depreciation 1212 Accum. Depr.-Office EquiAdjusted for accum. Depreciation 1412 Accum. Depr.-Building Adjusted for accum. Depreciation 985.00 3,765.00 3,765.00 850.00 850.00 5,805.00 5,500.00 1,265.00 985.00 990.00 2,300.00 1,962.00 412.78 228.00 15,375.00 15,375.00 271.46 28.07 243.39 0 0 985 (985) 0 0 0 0 0 0 3765 (3765) 0 0 0 0 0 0 850 (850) 0 0 0 0 0 0 5805 (5805) 0 0 0 0 0 0 5500 (5500) 0 0 0 0 0 0 1265 (1265) 0 0 0 0 0 0 985 (985) 0 0 0 0 0 0 990 (990) 0 0 0 0 0 0 526 (526) 0 0 0 0 0 0 770 (770) 0 0 0 0 0 0 108 (108) 0 0 0 0 0 0 2300 (2300) 0 0 0 0 0 0 1962 (1962) 0 0 0 0 0 0 413 (413) 0 0 0 0 0 0 228 (228) 0 0 0 0 0 0 15375 (15375) 0 0 0 0 0 0 271 (28) (243) 0 0 0 0 0 A Byte of Accounting General Journal al an ce Jun 30 Jun 30 Name Description 5110 Depreciation Expense Adjusted for accum. Depreciation 1312 Accum. Depr.-Computer E Adjusted for accum. Depreciation 37 37 Jun 30 Jun 30 5020 Salary Expense 2105 Salaries Payable Recorded unpaid salary expense Recorded unpaid salary expense 38 38 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable Interest on note payable Royce Interest on note payable Royce 39 39 Jun 30 Jun 30 1110 Cash 2102 Advanced Payments Increase Cash Increase Cash 40 40 Jun 30 Jun 30 2102 Advanced Payments 1110 Cash decreasing cash decreasing cash 41 41 Jun 30 Jun 30 5120 Bad Debt Expense Uncollectable revenue 1121 Allowance for Doubtful A Uncollectable revenue 42 42 Jun 30 Jun 30 5150 Income Tax Expense 2106 Income Taxes Payable 43 43 Jun 30 Jun 30 4100 Computer & Consulting Closing revenue acct. 3400 Income Summary Closing revenue acct. 34,640.00 44 44 44 44 44 44 44 44 44 44 44 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 3400 Income Summary Closing expenses acct. 5010 Rent Expense Closing expenses acct. 5020 Salary Expense Closing expenses acct. 5030 Advertising Expense Closing expenses acct. 5040 Repairs & Maint. Expens Closing expenses acct. 5080 Supplies Expense Closing expenses acct. 5090 Interest Expense Closing expenses acct. 5100 Insurance Expense Closing expenses acct. 5110 Depreciation Expense Closing expenses acct. 5050 Oil & Gas Expense Closing expenses acct. 5120 Bad Debt Expense Closing expenses acct. 33,602.80 45 45 Jun 30 Jun 30 3400 Income Summary 3200 Retained Earnings Closing income summary Closing income summary 14,567.93 46 46 Jun 30 Jun 30 3200 Retained Earnings 3300 Dividends Closig dividends Closig dividends To ta lB 36 36 C re di t D eb it ou nt A cc D at e Tr a ns ac tio n Note: You can only enter data into the yellow filled cells. income tax income tax 8,571.33 8,571.33 591.00 591.00 1,160.67 1,160.67 206,125.00 206,125.00 19,211.20 19,211.20 1,039.20 1,039.20 13,630.56 13,630.56 34,640.00 2,300.00 2,561.00 250.00 1,265.00 1,962.00 1,573.45 228.00 8,842.79 990.00 13,630.56 14,567.93 1,404.20 1,404.20 8571 (8571) 0 0 0 0 0 0 591 (591) 0 0 0 0 0 0 1161 (1161) 0 0 0 0 0 0 206125 (206125) 0 0 0 0 0 0 19211 (19211) 0 0 0 0 0 0 1039 (1039) 0 0 0 0 0 0 13631 (13631) 0 0 0 0 0 0 34640 (34640) 0 0 0 0 0 0 33603 (2300) (2561) (250) (1265) (1962) (1573) (228) (8843) (990) (13631) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14568 (14568) 0 0 0 0 0 0 1404 (1404) 0 0 0 0 0 0 0 PublicBank Byte of Accounting 123 Speed Lane Miami, Florida 33999 P.O. Box 5551212, Miami, Florida 33999 Ph # (305) 555-1212 Previous Balance Deposits/Credits Checks/Debits Ending Balance Activity in date order Date Jun 01 Jun 07 4 Jun 15 7 Jun 16 10 Jun 21 11 Jun 22 Jun 22 Jun 22 12 Jun 23 20 Jun 24 Jun 26 15 Jun 26 16 Jun 27 17 Jun 27 Jun 27 19 Jun 29 200,685.00 87,485.00 113,200.00 113,200.00 Account Number Statement Date Description Deposit Paid check # 5002 Paid check # 5003 Deposit Paid check # 5005 NSF NSF service charge Paid check # 5006 Deposit Paid check # 306 Paid check # 5007 Paid check # 5008 Paid check # 5009 Elec Remit AT&T Telephone Paid check # 5010 Service Charge- Checks 33999999 6/30/200x Amount 188,100.00 -36,000.00 -27,500.00 8,670.00 -11,900.00 -3,200.00 -25.00 -4,600.00 3,915.00 -1,500.00 -850.00 -400.00 -250.00 -225.00 -985.00 -50.00 Balance 188,100.00 152,100.00 124,600.00 133,270.00 121,370.00 118,170.00 118,145.00 113,545.00 117,460.00 115,960.00 115,110.00 114,710.00 114,460.00 114,235.00 113,250.00 113,200.00 113,200.00 0 0 0 0 0 0 0 0 8760 8700 8000 700 60 8670 -3200 -25 150 -1500 0 225 0 50 Check # 306 is not our check Our policy is to charge the customer for any charges related to NSF checks The Deposit on Jun 16 was incorrectly recorded by the bank. The Deposit on Jun 23 was correctly recorded by the bank. We do not modify the original journal entry. Company's Books Ending Balance per books Additions 1. Add to Books 2. Add to Bank Bank Statement 114,513.80 Ending balance per bank Additions Total Total Deductions Deductions Ending Correct cash balance Ending Correct cash balance 3. Deduct from Books 4. Deduct from bank 113,200.00 A Byte of Accounting, Inc. Worksheet For Period Ending June 30, 2015 Account Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building Cost 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3110 Paid-in Capital in Excess of Par Valu 3200 Retained Earnings 3300 Dividends 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5130 Bank Expense 5140 Telephone Expense 5150 Income Taxes Expense Total NET INCOME Balance ` Unadjusted Trial Balance Debit Credit 114,513.80 0.00 1,240.00 0.00 0.00 0.00 5,472.00 0.00 4,600.00 0.00 2,550.00 0.00 2,808.00 0.00 0.00 0.00 257,140.00 0.00 0.00 0.00 100,000.00 0.00 0.00 0.00 19,000.00 0.00 0.00 3,540.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 107,100.00 0.00 116,500.00 0.00 131,362.00 0.00 135,436.00 0.00 0.00 1,404.20 0.00 0.00 0.00 0.00 19,265.00 0.00 0.00 1,970.00 0.00 250.00 0.00 1,265.00 0.00 990.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 513,203.00 513,203.00 Adjusting Entries Debit Credit 186,913.80 0.00 15,375.00 0.00 0.00 1,039.20 0.00 228.00 0.00 2,300.00 0.00 1,962.00 0.00 0.00 0.00 28.07 0.00 0.00 0.00 8,571.33 0.00 0.00 0.00 243.39 0.00 0.00 0.00 0.00 0.00 186,913.80 0.00 1,573.45 0.00 591.00 0.00 13,630.56 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15,375.00 2,300.00 0.00 591.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,962.00 0.00 1,573.45 0.00 228.00 0.00 8,842.79 0.00 1,039.20 0.00 0.00 0.00 0.00 0.00 13,630.56 0.00 Adjusted Trial Balance Debit Credit 301,427.60 0.00 16,615.00 0.00 0.00 1,039.20 5,244.00 0.00 2,300.00 0.00 588.00 0.00 2,808.00 0.00 0.00 28.07 257,140.00 0.00 0.00 8,571.33 100,000.00 0.00 0.00 243.39 19,000.00 0.00 0.00 3,540.00 0.00 186,913.80 0.00 1,573.45 0.00 591.00 0.00 13,630.56 0.00 107,100.00 0.00 116,500.00 0.00 131,362.00 0.00 135,436.00 0.00 0.00 1,404.20 0.00 0.00 0.00 0.00 34,640.00 2,300.00 0.00 2,561.00 0.00 250.00 0.00 1,265.00 0.00 990.00 0.00 1,962.00 0.00 1,573.45 0.00 228.00 0.00 8,842.79 0.00 1,039.20 0.00 0.00 0.00 0.00 0.00 13,630.56 0.00 232,455.80 741,168.80 232,455.80 741,168.80 Income Statement Debit Credit Balance Sheet Debit Credit 114,513.80 16,615.00 1,039.20 5,244.00 2,300.00 588.00 2,808.00 28.07 257,140.00 8,571.33 100,000.00 243.39 19,000.00 3,540.00 1,573.45 591.00 3,641.98 107,100.00 116,500.00 131,362.00 135,436.00 - 34,640.00 2,300.00 2,561.00 250.00 1,265.00 990.00 1,962.00 1,573.45 228.00 8,842.79 1,039.20 0.00 0.00 13,630.56 34,640.00 34,640.00 508,587.22 0.00 508,587.22 0 0 0 A Byte of Accounting Income Statement For Month Ending June 30, 2015 You must finish the worksheet before you can complete the Income Statement, see FAQ 02. 4100 Revenues Computer Revenue Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Oil & Gas Expense Supplies Expense Interest Expense Insurance Expense Depreciation Expense Bad Debt Expense Bank Expense 5110 Telephone Expense Total 5010 5020 5030 5040 5050 5080 5090 5100 5110 5120 Net Income Before Tax Income Tax Expense (Round to two decimal places) Net Income After Tax Round to two places 0 0 0 A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 30, 2015 You must finish the worksheet before you can complete the Changes in Retained Earnings,see FAQ 02. Total Balance, Beginning of Period Net Income Dividends Balance, End of Period 0 d A Byte of Accounting Balance Sheet As of June 30, 2015 You must finish the worksheet before you can complete the Balance Sheet, see FAQ 02. Assets 1110 1120 1121 1130 1140 1150 1211 1212 Current Assets Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Prepaid Rent Office Supplies Total Long-Term Assets Office Equip. Accum. Depr.-Office Equip. 1311 1312 Computer Equip. Accum. Depr.-Computer Equip. 1411 1412 Building Cost Accum. Depr.-Building 1510 Land Total Total Assets Liabilities 2101 2102 2103 2105 2105 2201 2202 Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities Stockholder's Equity Paid-in Capital Capital Stock Paid-in Capital in Excess of Par Value Total Paid-in Capital Retained Earnings Total Sockholder's Equity Total Liabilities and Stockholder's Equity Building Blocks of Accounting .. A Financial Perspective LADAN, when you are ready to have your work graded you will upload this file LO2348.xls to the same screen that the project was downloaded from: www.cybertext.com, The Book List, Building Blocks of Accounting .. A Financial Perspective, Enter password, Upload Your Excel File. Keep two copies of your spreadsheet in two separate places in case one does not work. You may find it easier to work on this project if you print a hard copy of all the pages. NOTE: If there are any questions about the project e-mail markfriedman@miami.edu or call 305.284.6296. Grade will be based upon answers entered into the shaded boxes. F911 150126 or LO2348.xlsx, Elf Village Productions 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective Page 1 FAQ FAQ 01 My file used to upload, why is it not uploading? Answer: Sometimes we unknowing add items to a workbook that inhibits the upload process. The conversion to an earlier version Somehow clean the files and they then upload without problem. If the problem continue simple send your file as an attachment with your username and password...friedman@cybertext.com Windows Operating System Select File Select Save As Select Save As Type: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xls file Save As Save As Type: Excel Workbook (*.xlsx) Save Upload the file at cybertext.com Apple Operating System Select File Select Save As Select Format: Select Microsoft 5.0/95 Workbook (*.xls) Select Save Select Continue or Yes if prompted or if it indicates that there is limited memory. Select Select Select Select Select Select File Close File Open and open the .xls file Save As Format: Excel Workbook (*.xlsx) Save Excel 5.0/95 Workbook (.xls) Upload the file at cybertext.com Elf Village Productions MF1234.xlsx 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 02 When I try to enter information in the General Journal why does an error appears indicating that the cell protected? Page 2 Answer: The computer program is designed to save you time. Instead of requiring you to enter the description four times the program automatically copies the description when you enter a new account number. This process requires that the data entry is limited to those cells which contain unique information. The cells that you can enter data into are the yellow filled cells. FAQ 03 In the feedback section, what does it mean when I have points under reverse? Answer: If you pay a telephone expense of $100.00 Telephone Expense 100 Cash 100 If you debit cash and credit telephone expense you have reversed the whole entry. Cash 100 Telephone Expense 100 If you debit cash and credit anything else you have reversed part of the entry. Cash 100 Rent Expense Elf Village Productions 100 50 Sheet Legal Pad Building Blocks of Accounting .. A Financial Perspective FAQ FAQ 04 How does my instructor get my grade? Answer: Every time you upload your grade is recorded in a table. Your instructor can look at the table whenever they want to, although only the last grade counts. Keep a hard copy of your last upload for documentation. FAQ 05 I have entered all the transactions and have completed the worksheet however I get following message on the financial statements: "You must finish the worksheet before you can complete the ...." Answer: The worksheet demonstrates that the accounting system is working. If all of your journal entries are in balance then the Unadjusted Trial Balance and the Adjusting Entry columns will balance. The Adjusted Trial Balance columns net the Unadjusted Trial Balance and the Adjusting Entry columns. There are four steps to completing the worksheet: 1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the Balance Sheet columns, (debits remain debits and credits remain credits). 2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses. 3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet. 4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise there is an error in the completion of the worksheet. Page 3 Building Blocks of Accounting -- A Financial Perspective The instructions start on row 22 of this page. FIRST LADAN LAST OSMAN SS 2348 File LO2348 Welcome to the world's first ePractice case, an individualized, internet generated and graded case study that focuses on the analytically portion of the accounting cycle while automating the repetitive posting cycle. NOTE: If the program is not working e-mail markfriedman@miami.edu, 305.284.6296. Step I - The Chart of Accounts The chart of accounts includes all of the accounts that you can use to solve your case. You may want to print the chart of accounts and use it as an easy reference guide. Step II - Journalizing the Transactions. Using your unique transactions record the corresponding general journal entry, rounding to two decimal places. For example, 01 June 1: Hudson Bloom made a $40,000 cash investment in his business, Byte of Accounting. 01 Jun 01 C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n In the date field enter the date of the transaction. If you do not enter a date value an error message will appear. Cash 01 Jun 01 C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n In the account field enter the account number that corresponds to the account in the chart of accounts. You can also use the pull down list to find the appropriate account number. If you use a number that is not on the chart of accounts an error message will appear. 1110 Cash The name of the account will automatically appear in the name column. If it is the wrong account renter the correct account number. 01 Jun 01 1110 Cash C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n Enter the description in the description field. Hudson's investment Transaction # 1 Not in Balance by $40,000. 01 Jun 01 1110 Cash Hudson's investment 40,000.00 C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n Enter the amount in the debit field. C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n Enter the second account number. Transaction # 1 Not in Balance by $40,000. 01 01 Jun 01 Jun 01 1110 Cash 3100 Capital Stock Hudson's investment 40,000.00 Hudson's investment 01 Jun 01 1110 Cash 3100 Capital Stock Hudson's investment Hudson's investment C re di t Description eb it Name D ou nt A cc D at e Tr a ns ac tio n Enter the amount in the credit field. 40,000.00 40,000.00 Step III - Worksheet Although not graded, you need to complete the Worksheet. If each of your journal entries are in balance then your Unadjusted Trial Balance, the Adjusting Entry and Adjusted Trial Balance columns will be in balance. 1. Copy the account balances from the Adjusted Trial Balance into the either the Income Statement or the Balance Sheet columns, (debits remain debits and credits remain credits). 2. Calculate the Net Income or Net Loss by finding the difference between the revenues and expenses. 3. Calculate the Net Income or Net Loss by finding the difference between the total of the debit balances and the total of the credit balances of the accounts in the Balance Sheet columns of the worksheet. 4. Compare the two Net Incomes. If they are the same the financial statements will be displayed, otherwise there is an error in the completion of the worksheet. Step IV - Prepare the Financial Statements. Press Here To Create After you have entered all of the transactions and prepared the Worksheet, you are to prepare the Income The General Ledger Statement, Shareholder's Equity Statement and Balance Sheet using the forms provided. Step V - Prepare the Closing Entries. Based upon the information from your Worksheet or from your Financial Statements, prepare the closing entries. Step VI - Upload the File. Whenever you want to have cybertext.com grade your work submit it to them on the bottom of the screen that you downloaded the file. Grading: You will be graded on the Journal Entries and the three financial statement. The case will be computer graded, therefore make sure all numbers are in the appropriate cells. The computer will evaluate your transactions when grading your financial statements. Note: Save and make backup copies regularly. Number Name 1110 Cash 1120 Accounts Receivable 1121 Allowance for Doubtful Accounts 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building 1412 Accum. Depr.-Building 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3110 Paid-in Capital in Excess of Par Value 3200 Retained Earnings 3300 Dividends 3400 Income Summary 4100 Computer & Consulting Revenue 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Bad Debt Expense 5130 Bank Expense 5140 Telephone Expense 5150 Income Tax Expense Normal Balance Debit Debit Credit Debit Debit Debit Debit Credit Debit Credit Debit Credit Debit Credit Credit Credit Credit Credit Credit Credit Credit Credit Credit Debit Credit Credit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Error # 1 2 4 8 16 32 64 128 256 512 1024 Message Debit And Credit On Same Line Debit Before Credit Need An Account Number Round To Two Decimal Places Need a Description Need a Date Byte of Accounting LADAN OSMAN 2503 Transaction Description of transaction June 1: Jeremy made an investment in Byte of Accounting, Inc., by purchasing 2,630 shares of its stock paying $41,800 in cash and by contributing computer equipment with a fair market value of $58,140. The par value of the common stock was $22 per share. 01. common June 1: Courtney made an investment in Byte of Accounting, Inc., by purchasing 541 shares of its stock by contributing computer equipment with a fair market value of $19,000 and office equipment with a fair value of $1,558. The par value of the common stock was $22 per share. 02. common 03. June 1: LADAN OSMAN made an investment in Byte of Accounting, Inc. by purchasing 3,850 shares of its common stock for $146,300 cash. The par value of the common stock was $22 per share. June 2: Check # 5002 was used to make a down payment of $36,000.00 on additional computer Royce Computers, invoice number 76542. The full price of the computer was $180,000.00. A five-year note was executed by Byte for the balance. 04. equipment that was purchased from 05. June 4: Additional office equipment costing $500.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432. 06. June 8: Unsatisfactory office equipment costing $100.00 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 $27,500.00 payment reducing the prinicpal owed on the June 2 purchase of computer equipment from Royce Computers. 08. June 10: 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 $40.00 each. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer $5,472.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387. 09. equipment for 10. June 16: Checks in the amount of $8,760.00 was received for services performed for cash customers. June 16: Byte purchased a building and the land it is on for $119,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $19,000.00. The 11. balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $11,900.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance. 12. June 13. June 17: Received invoice number 26354 in the amount of $250.00 from the local newspaper for advertising. 14. June 15. 17: Check # 5006 for $4,600.00 was paid for rent for June and July. 21: Billed various miscellaneous local customers $4,700.00 for consulting services performed. June 21: Check # 5007 was used to purchase a fax machine for the office from Office Machines Express for $850.00. The invoice number was 975-328. 16. June 21: Accounts payable in the amount of $400.00 were paid with Check # 5008. 17. June 22: Check # 5009 was used to pay the advertising bill that was received on June 17. 18. June 22: Received a bill for $1,265.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254. 19. June 22: Check # 5010 was used to pay salaries of $985.00 to equipment operators for the week ending June 18. Ignore payroll taxes. 20. June 21. 23: Cash in the amount of $3,765.00 was received on billings. June 23: Purchased office supplies for $850.00 from Staples on account. The invoice number was 65498. Included in the purchase was 10 units of Super RoutePro at a cost of $46.00 each. 22. June 28: Billed $5,805.00 to miscellaneous customers for services performed to June 25. 23. June 29: Cash in the amount of $5,500.00 was received for billings. 24. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011. 25. June 29: Check # 5012 was used to pay salaries of $985.00 to equipment operators for the week ending June 25. Ignore payroll taxes. 26. June 30: Received a bill for the amount of $990.00 from O & G Oil and Gas Co. The invoice number was 784537. 27. June 30: Check # 5013 was used to pay for a cash dividend of $0.20 per share to Jeremy, a shareholder of Byte. 28. June 30: Check # 5014 was used to pay for a cash dividend of $0.20 per share to LADAN OSMAN a shareholder of Byte. 29. June 30: Check # 5015 was used to pay for a cash dividend of $0.20 p