в Byte of Accounting, Inc. John Clark 3394 Description of transaction June 1: Byte of Accounting,…
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в Byte of Accounting, Inc. John Clark 3394 Description of transaction June 1: Byte of Accounting, Inc. issued 2,650 shares of its common stock to Jeremy after $25,300 in cash and computer equipment with a fair market value of $35,650 were received. Transaction 01. June 1: Byte of Accounting, Inc. issued 2.451 shares of its common stock after acquiring from Courtney S42,550 in cash, computer equipment with a fair market value of $12,880 and office equipment with a fair value of $943. 03. June 1: Byte of Accounting, Inc. acquired $55,200 in cash from John Clark and issued 2,400 shares of its common stock. 04. June 2: A down payment of $27,000 in cash was made on additional computer equipment that was purchased for $135,000. A five-year note was executed by Byte for the balance. June 4: Additional office equipment costing $500 was purchased on credit from Discount 05. Computer Corporation. Chart of Accounts Transactions General Journal Worksheet Income Statement Changes ir…
В June 8: Unsatisfactory office equipment costing $100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07 June 10: Byte paid $20,750 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 $5,640 in cash. The effective date of the policy was June 16. 09. June 16: Computer consultation revenue of $8,250 was received. June 16. Byte purchased a building and the land it is on for $125,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $20,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $12,500 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. June 17: Cash of $3,200 was paid for rent for June and July. Put the total amount into the Chart of Accounts Transactions General Journal Worksheet Income Statement Changes it … + 0 0 BI
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June 23: Cash in the amount of $3,925 was received on billings. June 23: Purchased office supplies for $505 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed $5,910 to miscellaneous customers for services performed to June 25. June 29: Cash in the amount of $5,600 was received for billings. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. OU 24. June 29: Paid salaries of $935 to equipment operators for the week ending June 25. – 25. June 30: Received a bill for the amount of $790 from 0 & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.21 per share to the three shareholders of Byte. [IMPORTANT NOTE: The number ef shares of capital stock outstanding can be determined from the first three transactions.) … Chart of Accounts Transactions General Journal Worksheet Income Statement Changes ir…
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 $202.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 7.25 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. 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 $5,375 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 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 $500. 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 $561 are owed by Byte for three days, June 28 – 30. 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 $108,000. On June 10, eight days later, $20,750 was repaid. Interest expense must be calculated on the $108,000 for eight days. In addition, interest expense on the $87,250 balance of the loan (S108,000 less $20,750 = $87,250) must be calculated for the 20 days remaining in hel ft…1 Chart of Accounts Transactions General Journal Worksheet Income Statement Changes ir… …
[IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $108,000. On June 10, eight days later, $20,750 was repaid. Interest expense must be calculated on the $108,000 for eight days. In addition, interest expense on the $87,250 balance of the loan ($108,000 less $20,750 = $87,250) 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.)
A Byte of Accounting, Inc. General Journal 3 Note: You can only enter data into the yellow filled cells. Transaction Account Date Name Description Debit Credit 162 163 164 165 166 167 168 169 170 171 172 Chart of Accounts Transactions General Journal Worksheet Income Statement Changes it…
Answer
Byte of Accounting Inc Journal entry Account Debit Credit Calculation Number Date 1-Jun Cash 1 25,300.00 Computer Equipment 35,650.00 Common Stock 60,950.00 1-Jun Cash 2 42,550.00 Computer Equipment 12,880.00 Office Equipment 943.00 Common Stock 56,373.00 1-Jun Cash 55,200.00 55,200.00 Common Stock 135,000.00 4 2-Jun Computer Equipment Cash 27,000.00 Note Payable 108,000.00 4-Jun Office Equipment 500.00 Accounts payable 500,00 8-Jun Accounts payable 6 100.00 Office Equipment 100.00 10-Jun Note Payable 20,750.00 Cash 20,750.00 14-Jun Prepaid Insurance 5,640.00 1 year wef June 16 Cash 5,640.00 16-Jun Cash 8,250.00 9 Computer Consultation Revenue 8,250.00 16-Jun Land 10 20,000.00 Building 105,000.00 =125,000-20,000 Cash 12,500.00 Mortgage Payable 112,500.00 =125,000-12,500 17-Jun Prepaid Rent June, July 11 3,200.00 3,200.00 Cash 17-Jun Advertising expense 250.00 12 Accounts Payable 250.00 21-Jun Accounts Receivable 13 4.900,00 Computer Consultation Revenue 4,900.00 21-Jun Office Equipment 14 775.00 Cash 775.00 21-Jun Accounts Payable 15 400.00 Cash 400.00 22-Jun Accounts Payable 16 250.00 Cash 250.00 22-Jun Repairs & Maintenance expense 1,190.00 17 Accounts Payable 1,190.00 22-Jun Salary expense 18 935.00 935.00 Cash 23-Jun Cash 19 3,925.00 3,925.00 Accounts Receivable 23-Jun Office Supplies 20 505.00 Accounts Payable 505.00 21 28-Jun Accounts Receivable 5,910.00 5,910.00 Computer Consultation Revenue 22 29-Jun Cash 5,600.00 Accounts Receivable 5,600.00 29-Jun Accounts Payable 23 1,190.00 Cash 1,190.00 29-Jun Salary expense 24 935.00 Cash 935.00 30-Jun Oil & gas expense 25 790.00 Accounts Payable 790.00 30-Jun Dividends 2,650+2,451+2,400)*0.21 1,575.21 Cash 1,575.21 26
Adjusting entries -3,200/2 30-Jun Rent expense 27 1,600.00 Prepaid rent 1,600.00 30-Jun Supplies expense 28 303.00 -505-202 Office Supplies 303.00 30-Jun Interest expense 112,500*7.25%*0.5/12 29 339.84 Interest Payable 339.84 =5,640/12*0.5 30-Jun Insurance expense 30 235.00 Prepaid Insurance 235.00 30-Jun Accounts Receivable 31 5,375.00 Computer Consultation Revenue 5,375.00 30-Jun Depreciation expense 3,336.03 32 Accum. Depr. Building 257.94 (105,000-7,500)/31.5*1/12 3,058.83 35,650+12,880+135,000)/5*1/12 19.26 (943+500-100+775)-500)/7 1/12 Accum. Depr. Computer Equip Accum. Depr. – Office Equip 30-Jun Salary expense 33 561.00 Salaries Payable 561.00 (108,000*12%*8/360)+( (108,000- 20,750) 12% 20/360) 30-Jun Interest expense 34 869.67 Interest Payable 869.67 – 13,090.46*25% 30-Jun Income tax expense 35 3,272.61 Income tax Payable 3,272.61 Refer Income Statement Closing entries 36 30-Jun Computer Consultation Revenue 24,435.00 24,435.00 Income Summary 30-Jun Income Summary 37 14,617.16 Rent expense 1,600.00 2,431.00 Salary expense Advertising expense 250.00 Repairs & maintenance expense 1,190.00 Oil & gas expense 790.00 Supplies expense 303.00 Interest expense 1,209.51 Insurance expense 235.00 Depreciation expense 3,336.03 Income tax expense 3,272.61 30-Jun Income Summary 38 9,817.84 Retained Earnings 9,817.84 30-Jun Retained Earnings 39 1,575.21 Dividends 1,575.21
Byte of Accounting, Inc. T Accounts Date Date Date Date Credit Debit Credit Date Debit Credit Date Date Debit Credit Date Debit Cash Accounts Receivable Prepaid Insurance Prepaid Rent 2-Jun 27,000.00 10-Jun 20,750.00 4,900.00 1,600.00 1-Jun 55,200.00 21-Jun 23-Jun 3,925.00 14-Jun 5,640.00 30-Jun 235.00 17-Jun 3,200.00 30-Jun 25,300.00 42,550.00 28-Jun 5,910.00 5,600.00 1-Jun 29-Jun 1-Jun 14-Jun 5,640.00 30-Jun 5,375.00 16-Jun 8,250.00 16-Jun 12,500.00 3,925.00 23-Jun 17-Jun 3,200.00 29-Jun 5,600.00 21-Jun 400.00 21-Jun 775.00 22-Jun 935.00 22-Jun 250.00 29-Jun 1,190.00 29-Jun 935.00 30-Jun 1,575.21 1,600.00 Accum. Depr. Depr. 65,674.79 6,660.00 Bal. 5,405.00 Bal. office Supplies Land Building 16-Jun 20,000.00 16-Jun 105,000.00 23-Jun 505.00 30-Jun 303.00 30-Jun 257.94 Bal. 202.00 Bal. 257.94 bal 20,000.00 bal. 105,000.00 Computer Equipment Office Equipment 943.00 Acum. Depr. Computer Equipment 3,058.83 Acum. Depr. Office Equipment 1-Jun 35,650.00 30-Jun 1-Jun 30-Jun 19.26 100.00 4-Jun 1-Jun 12,880.00 500.00 8-Jun 2-Jun 135,000.00 21-Jun 775.00 183,530.00 Bal. Advance payment Bal Salaries 358.83 Bal. 2,118.00 19.26 Accounts Payable Interest Payable 8-Jun 100.00 4-Jun 500.00 30-Jun 339.84 30-Jun 561.00 21-Jun 400.00 17-Jun 250.00 30-Jun 869.67 22-Jun 1,190.00 250.00 22-Jun 29-Jun 23-Jun 505.00 1,190.00 30-Jun 790.00 Bal. Bal. 1,295.00 |Bal. Bal. 561.00 1,209.51 Income Taxes Payable Mortagage Pauable Note Payable Common Stock 16-Jun 112,500.00 20,750.00 2-Jun 108,000.00 30-Jun 3,272.61 10-Jun 1-Jun 55,200.00 1-Jun 60,950.00 56,373.00 1-Jun Bal. Bal Bal. Bal. 3,272.61 112,500.00 87,250.00 172,523.00 Retained Earnings Dividends Income Summary 1,575.21 24,435.00 30-Jun 1,575.21 30-Jun 9,817.84 30-Jun 30-Jun 1,575.21 30-Jun 14,617.16 30-Jun 30-Jun 9,817.84 Bal. 8,242.63 Bal. Bal. Advertising expense Rent expense Salary expense 935.00 Computer Consultation Revenue 16-Jun 30-Jun 1,600.00 17-Jun 8,250.00 22-Jun 250.00 4.900.00 21-Jun 29-Jun 935.00 28-Jun 5,910.00 30-Jun 561.00 5,375.00 30-Jun 24,435.00 30-Jun 30-Jun 1,600.00 30-Jun 2,431.00 30-Jun 250.00 Bal. Bal. Bal Bal. Supplies expense Repairs & maintenance expense Oil & gas expense Interest expense 790.00 22-Jun 1,190.00 30-Jun 30-Jun 303.00 30-Jun 339.84 30-Jun 1,190.00 30-Jun 790.00 30-Jun 303.00 30-Jun 869.67 30-Jun 1,209.51 Bal. Bal Bal. Depreciation expense Insurance expense Income tax expense 30-Jun 235.00 30-Jun 257.94 30-Jun 3,272.61 3,058.83 30-Jun 30-Jun 3,336.03 3,272.61 30-Jun 235.00 19.26 30-Jun 30-Jun Bal. Bal Bal. 3,272.61
Adjusted Trial balance Unadjusted Byte Of Accounting Inc Adjusting entries Prepaid insurance 5,640.00 23,5.00 6,660.00 Accounts Receivable 1,285.00 5,375.00 6,660.00 Prepaid rent Office supplies 1,600.00 1,200.00 505.00 303.00,202.00 Office equipment 2,118.00 2,118.00 Accum. Depr. – Office Equipment 19.26 19.26 Computer Equipment Depr. Computer Equipment Land 20,000.00 to 20,000.00 Building Accum. Depr. Depr.
Byte of Accounting, Inc. for the period ending June 30, Income Statement Computer Consultation Revenue 24,435.00 Total expenses 11,344.54 Income Tax Expense @ 25% 13,272.61 13,090.46*25% Income Profit 9,817.84 Statement of Retained Earnings for period ending June 30, Opening Balance Net Profit 9,817.84 (1,575.21) less Dividends Ending balance 8,242.63
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