accounting-Building Blocks of Accounting .. A Financial Perspective to the same screen

Byte of Accounting, Inc.

De`Antae McGhee 7834

Transaction
Description
of transaction

01.
June 1: Byte of Accounting, Inc. acquired $70,200
in cash from Lauryn and issued 2,600 shares of its common stock.

02.
June 1: Byte of Accounting, Inc. issued 2,610
shares of its common stock to De`Antae McGhee after $30,240 in cash and
computer equipment with a fair market value of $40,230 were received.

03.
June 1: Byte of Accounting, Inc. issued 1,959
shares of its common stock after acquiring
from Courtney $36,450 in cash, computer equipment with a fair market
value of $15,660 and office equipment with a fair value of $783.

04.
June 2: A down payment of $33,000 in cash was made
on additional computer equipment that was purchased for $165,000. 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 returned to Discount Computer
for credit to be applied against the outstanding balance owed by Byte.

07.
June 10: Byte paid $25,250 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: A check in the amount of $6,500 was received for consulting revenue.

10.
June 16: Byte purchased a building and the land it
is on for $137,000, to house its repair facilities and to store computer
equipment. The lot on which the
building is located is valued at $22,000. The balance of the cost is to be
allocated to the building. Byte made a
cash down payment of $13,700 and
executed a mortgage for the balance.
The mortgage is payable in eight equal annual installments beginning
July 1.

11.
June 17: Cash of $7,200 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 $475 from the local
newspaper for advertising.

13.
June 21: Accounts payable in the amount of $240 were
paid.

14.
June 21: A fax machine for the office was purchased
for $850 cash.

15.
June 21: Billed
various miscellaneous local customers $4,100 for consulting services
performed.

16.
June 22: Paid salaries of $1,010 to equipment
operators for the week ending June 18.

17.
June 22: Received a bill for $1,115 from Computer
Parts and Repair Co. for repairs to the computer equipment.

18.
June 22: Paid the advertising bill that was received
on June 17.

19.
June 23: Purchased office supplies for $555 on
credit. Record the purchase as an
increase to the assets.

20.
June 23: Cash in the amount of $3,285 was received
on billings.

21.
June 28: Billed $5,700 to miscellaneous customers
for services performed to June 25.

22.
June 29: Paid the bill received on June 22, from
Computer Parts and Repairs Co.

23.
June 29: Cash in the amount of $5,400 was received
for billings.

24.
June 29: Paid salaries of $1,010 to equipment
operators for the week ending June 25.

25.
June 30: Received a bill for the amount of $990 from
O & G Oil and Gas Co.

26.
June 30: Paid a cash dividend of $0.19 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.

28.
A physical
inventory showed that only $225.00 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 $8,750 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 $7,000. The
office equipment has a scrap value of $500.
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 $606.00 are owed
by 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 $132,000. On June 10, eight days later, $25,250 was
repaid. Interest expense must be

calculated on
the $132,000 for eight days. In
addition, interest expense on the $106,750 balance of the loan ($132,000 less
$25,250 = $106,750) 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.]

Closing
Entries

36.
Close the
revenue accounts.

37.
Close the
expense accounts.

38.
Close the
income summary account.

39.
Close the
dividends account.

A Byte of Accounting, Inc.

General Journal

.0/msohtmlclip1/01/clip_image002.gif”>

Transaction
Date
Account
Name
Description
Debit
Credit
Total Balance

01
Jun 01
1110
Cash
Lauryn Investment
70,200.00

70200
0

01
Jun 01
3100
Capital Stock
Lauryn
Investment

70,200.00
(70200)
0

0
0

0
0

02
Jun 01
1110
Cash
De’Antae’s common
stock
30,240.00

30240
0

02
Jun 01
1311
Computer Equip.
De’Antae’s common
stock
40,230.00

40230
0

02
Jun 01
3100
Capital Stock
De’Antae’s common
stock

70,470.00
(70470)
0

0
0

03
Jun 01
1110
Cash
Courtney’s
Investment
36,450.00

36450
0

03
Jun 01
1311
Computer Equip.
Courtney’s
Investment
15,660.00

15660
0

03
Jun 01
1211
Office Equip.
Courtney’s
Investment
783.00

783
0

03
Jun 01
3100
Capital Stock
Courtney’s
Investment

52,893.00
(52893)
0

04
Jun 02
1311
Computer Equip.
Computer down
payment
198,000.00

######
0

04
Jun 02
2202
Notes Payable
Computer down
payment

165,000.00
######
0

04
Jun 02
1110
Cash
Computer down
payment

33,000.00
(33000)
0

0
0

05
Jun 04
1211
Office Equip.
Office equipment on
credit
300.00

300
0

05
Jun 04
2101
Accounts Payable
Office equipment on
credit

300.00
(300)
0

0
0

0
0

06
Jun 08
2101
Accounts Payable
Return office
equipment
60.00

60
0

06
Jun 08
1211
Office Equip.
Return office
equipment

60.00
(60)
0

0
0

0
0

07
Jun 10
2202
Notes Payable
Pay on computer
25,250.00

25250
0

07
Jun 10
1110
Cash
Pay on computer

25,250.00
(25250)
0

0
0

0
0

08
Jun 14
1130
Prepaid Insurance
Pay for
insurance
5,640.00

5640
0

08
Jun 14
1110
Cash
Pay for
insurance

5,640.00
(5640)
0

0
0

0
0

09
Jun 16
1110
Cash
Consulting
revenue
6,500.00

6500
0

09
Jun 16
4100
Computer &
Consulting Revenue
Consulting
revenue

6,500.00
(6500)
0

0
0

0
0

10
Jun 16
1411
Building Cost
Building and land for
house
137,000.00

######
0

10
Jun 16
1510
Land
Building and land for
house
22,000.00

22000
0

10
Jun 16
1110
Cash
Building and land for
house

13,700.00
(13700)
0

10
Jun 16
2201
Mortgage Payable
Building and land for
house

145,300.00
######
0

11
Jun 17
1140
Prepaid Rent
Payment for rent
7,200.00

7200
0

11
Jun 17
1110
Cash
Payment for rent

7,200.00
(7200)
0

0
0

0
0

12
Jun 17
5030
Advertising Expense
Advertising
475.00

475
0

12
Jun 17
2101
Accounts Payable
Advertising

475.00
(475)
0

0
0

0
0

13
Jun 21
2101
Accounts Payable
Payment
240.00

240
0

13
Jun 21
1110
Cash
Payment

240.00
(240)
0

0
0

0
0

14
Jun 21
1211
Office Equip.
Fax machine
850.00

850
0

14
Jun 21
1110
Cash
Fax machine

850.00
(850)
0

0
0

0
0

15
Jun 21
1120
Accounts Receivable
Consulting
service
4,100.00

4100
0

15
Jun 21
4100
Computer &
Consulting Revenue
Consulting
service

4,100.00
(4100)
0

0
0

0
0

16
Jun 22
5020
Salary Expense
Paid salary
1,010.00

1010
0

16
Jun 22
1110
Cash
Paid salary

1,010.00
(1010)
0

0
0

0
0

17
Jun 22
5040
Repairs & Maint.
Expense
Repair expense
1,115.00

1115
0

17
Jun 22
2101
Accounts Payable
Repair expense

1,115.00
(1115)
0

0
0

0
0

18
Jun 22
2101
Accounts Payable
Advertising bill
475.00

475
0

18
Jun 22
1110
Cash
Advertising bill

475.00
(475)
0

0
0

0
0

19
Jun 23
1150
Office Supplies
Supplies
555.00

555
0

19
Jun 23
2101
Accounts Payable
Supplies

555.00
(555)
0

0
0

0
0

20
Jun 23
1110
Cash
Cash for bill
3,285.00

3285
0

20
Jun 23
1120
Accounts Receivable
Cash for bill

3,285.00
(3285)
0

0
0

0
0

21
Jun 28
1120
Accounts Receivable
Service
5,700.00

5700
0

21
Jun 28
4100
Computer &
Consulting Revenue
Service

5,700.00
(5700)
0

0
0

0
0

22
Jun 29
2101
Accounts Payable
Computer parts
1,115.00

1115
0

22
Jun 29
1110
Cash
Computer parts

1,115.00
(1115)
0

0
0

0
0

23
Jun 29
1110
Cash
Cash reveived
5,400.00

5400
0

23
Jun 29
1120
Accounts Receivable
Cash reveived

5,400.00
(5400)
0

0
0

0
0

24
Jun 29
5020
Salary Expense
Paid salary
1,010.00

1010
0

24
Jun 29
1110
Cash
Paid salary

1,010.00
(1010)
0

0
0

0
0

25
Jun 30
5050
Oil & Gas Expense
Oil & Gas bill
990.00

990
0

25
Jun 30
2101
Accounts Payable
Oil & Gas bill

990.00
(990)
0

0
0

0
0

26
Jun 30
3300
Dividends
cash dividend
1,362.11

1362
0

26
Jun 30
1110
Cash
cash dividend

1,362.11
(1362)
0

0
0

0
0

27
Jun 30
5010
Rent Expense
Rent expense
2,400.00

2400
0

27
Jun 30
1140
Prepaid Rent
Rent expense

2,400.00
(2400)
0

0
0

0
0

28
Jun 30
5080
Supplies Expense
Office supplies
225.00

225
0

28
Jun 30
1150
Office Supplies
Office supplies

225.00
(225)
0

0
0

0
0

29
Jun 30
5090
Interest Expense
interest expense
438.93

439
0

29
Jun 30
2103
Interest Payable
interest expense

438.93
(439)
0

0
0

0
0

30
Jun 30
5100
Insurance Expense
Insurance expense
235.00

235
0

30
Jun 30
1130
Prepaid Insurance
Insurance expense

235.00
(235)
0

0
0

0
0

31
Jun 30
1120
Accounts Receivable
Unbilled revenue
8,750.00

8750
0

31
Jun 30
4100
Computer &
Consulting Revenue
Unbilled revenue

8,750.00
(8750)
0

0
0

0
0

32
Jun 30
5110
Depreciation Expense
building, office,
computer, depreication
55,101.12

55101
0

32
Jun 30
1412
Accum. Depr.-Building
building, office,
computer, depreication

4,126.98
(4127)
0

32
Jun 30
1212
Accum. Depr.-Office
Equip.
building, office,
computer, depreication

196.14
(196)
0

32
Jun 30
1312
Accum. Depr.-Computer
Equip.
building, office,
computer, depreication

50,778.00
(50778)
0

33
Jun 30
5020
Salary Expense
Unpaid salary
606.00

606
0

33
Jun 30
2105
Salaries Payable
Unpaid salary

606.00
(606)
0

0
0

0
0

34
Jun 30
5090
Interest Expense
interest expense
1,063.67

1064
0

34
Jun 30
2103
Interest Payable
interest expense

1,063.67
(1064)
0

0
0

0
0

35
Jun 30
5120
Income Tax Expense
income taxes

0
0

0
0

0
0

0
0

36

0
0

0
0

0
0

0
0

37

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

0
0

38

0
0

0
0

0
0

0
0

39

0
0

0
0

0
0

A Byte of Accounting, Inc.

Worksheet

For Period Ending June 30, 2015

Account

Unadjusted Trial Balance
Adjusting Entries
Adjusted Trial Balance
Income
Statement

Number
Name
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit

1110
Cash
61,222.89



61,222.89

1120
Accounts Receivable
1,115.00

8,750.00

9,865.00

1130
Prepaid Insurance
5,640.00


235.00
5,405.00

1140
Prepaid Rent
7,200.00


2,400.00
4,800.00

1150
Office Supplies
555.00


225.00
330.00

1211
Office Equip.
1,873.00



1,873.00

1212
Accum. Depr.-Office
Equip.



196.14

196.14

1311
Computer Equip.
253,890.00



253,890.00

1312
Accum. Depr.-Computer
Equip.



50,778.00

50,778.00

1411
Building Cost
137,000.00



137,000.00

1412
Accum. Depr.-Building



4,126.98

4,126.98

1510
Land
22,000.00



22,000.00

2101
Accounts Payable

1,545.00



1,545.00

2102
Advanced Payments





2103
Interest Payable



1,502.60

1,502.60

2105
Salaries Payable



606.00

606.00

2106
Income Taxes Payable





2201
Mortgage Payable

145,300.00



145,300.00

2202
Notes Payable

139,750.00



139,750.00

3100
Capital Stock

193,563.00



193,563.00

3200
Retained Earnings





3300
Dividends
1,362.11



1,362.11

4100
Computer & Consulting Revenue

16,300.00

8,750.00

25,050.00

5010
Rent Expense


2,400.00

2,400.00

5020
Salary Expense
2,020.00

606.00

2,626.00

5030
Advertising Expense
475.00



475.00

5040
Repairs & Maint.
Expense
1,115.00



1,115.00

5050
Oil & Gas Expense
990.00



990.00

5080
Supplies Expense


225.00

225.00

5090
Interest Expense


1,502.60

1,502.60

5100
Insurance Expense


235.00

235.00

5110
Depreciation Expense


55,101.12

55,101.12

Tutorials for this Question

Available for

$30.00

accounting-Building Blocks of Accounting .. A Financial Perspective to the same screen

Tutorial # 00131200 Posted On: 11/19/2015 12:22 PM Feedback Score: Not rated yet!
This tutorial has been purchased 0 times.

Posted By:

solutionshere

Questions:103773
Tutorials:101256

Feedback Score:
96% (5033 ratings)

Report this Tutorial as Inappropriate

Tutorial Preview
…per xxxxx to xxx three shareholders xx Byte [IMPORTANT xxxxx The xxxxxx xx shares xx capital stock xxxxxxxxxxx can be xxxxxxxxxx from xxx xxxxx three xxxxxxxxxxxx ]Adjusting Entries x Round to xxx decimal xxxxxx xx The xxxx payment made xx June 17 xxx for xxxxx xxxx and xxxxxx Expense the xxxxxx associated with xxx month’s xxxx xx A xxxxxxxx inventory showed xxxx only $225 xx worth xx xxxxxx supplies xxxxxxxx on hand xx of June xx 29 xxx xxxxxx interest xxxx on the xxxxxxxx payable was x 25 xxxxxxx xxxxxxxx expense xxx one-half month xxxxxx be computed xxxxxxx the xxxxxxxx xxx land xxxx purchased and xxx liability incurred xx June xx xx Information xxxxxxxx to the xxxxxxx insurance may xx obtained xxxx xxx transaction xxxxxxxx on June xx Expense the xxxxxx associated xxxx xxx half xxxxxxx insurance 31 x review of xxxxxxxx job xxxxxxxxxx xxxx that xxxxx are unbilled xxxxxxxx in the xxxxxx of xxxxxx xxx the xxxxxx of June xxxxx 32 The xxxxx assets xxxx xxxxxxxxx useful xxxxx as follows:Building x 31 5 xxxxxxxxxxxxx Equipment x x 0 xxxxxxxxxxx Equipment – x 0 yearsUse xxx straight-line xxxxxx xx depreciation xxxxxxxxxx has decided xxxx assets purchased xxxxxx a xxxxx xxx treated xx if purchased xx the first xxx of xxx xxxxx The xxxxxxxxxxxx scrap value xx $7,000 The xxxxxx equipment xxx x scrap xxxxx of $500 xxx computer equipment xxx no xxxxx xxxxx Calculate xxx depreciation for xxx month 33 x review xx xxx payroll xxxxxxx show that xxxxxx salaries in xxx amount xx xxxx 00 xxx owed by xxxx for three xxxxx June xx x 30 xx The note xxxxxxx relating to xxx June xx xxx 10 xxxxxxxxxxxx is a xxxxxxxxx note, with xxxxxxxx at xxx xxxx of xx percent annually xxxxxxxx expense should xx computed xxxxx xx a…

Attachments
soln.zip (56.04 KB)Preview not available.
Purchase this Tutorial @ $30.00 *

* – Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable

Copyright © 2012-2014 HomeworkMinutes.com

Home  
Contact Us  
Terms of Use  

Academic Honesty Policy

Uploading copyrighted material is strictly prohibited. Refer to our DMCA Policy for more information.

This is an online marketplace for tutorials and homework help. All the content is provided by third parties and HomeworkMinutes.com is not liable for the same.

(function(){ var widget_id = ‘81387’;
var s = document.createElement(‘script’); s.type = ‘text/javascript’; s.async = true; s.src = ‘//code.jivosite.com/script/widget/’+widget_id; var ss = document.getElementsByTagName(‘script’)[0]; ss.parentNode.insertBefore(s, ss);})();

Quick Search

(please type in the exact tutorial number or question number to search)

Search by Question # GO
 
Or, Tutorial # GO

Loading…

 

CLICK HERE TO ORDER A SIMILAR PAPER

We pride ourselves in writing quality essays

CLICK HERE TO CONTACT US

Lets Start Working

Plagiarism Free

We use anti-plagiarism software to ensure you get high-quality, unique papers. Besides, our writers have a zero plagiarism mentality

On Time Delivery

Your essay will be delivered strictly within the deadline.  If you have an urgent order, we can do it!

Money Back Guarantee

We offer warranty service, including free revisions, and a right to request a refund incase your expectations are not met!

THE BEST PAPER WRITER HELPER

Our Advantage

  • Say “NO” to plagiarism – FREE plagiarism report as an addition to your paper
  • The lowest prices that fit excellent quality
  • Authorship – you are the one who possesses the paper. We DO NOT re-sale or re-use any of them.

OUR PAPER WRITER HELPER GOODIES

Our Freebies

  • Free Cover Page
  • Free Revisions
  • Free Reference Page
  • Free 24/7 support

Pin It on Pinterest

Share This