Transaction Byte of Accounting, Inc Assignment | College Homework Help

Transaction Byte of Accounting, Inc. garrett blackwell 1454 Description of transaction June 1: Byte of Accounting, Inc. issued 2.590 shares of its common stock to Jeremy after $22,260 in cash and computer equipment with a fair market value of $32,130 were received 01. 02. June 1: Byte of Accounting, Inc. issued 2,193 shares of its common stock after acquiring from Courtney 536,750 in cash, computer equipment with a fair market value of $8,820 and office equipment with a fair value of $483 June 1: Byte of Accounting, Inc. acquired $54,600 in cash from garrett blackwell and issued 2,600 shares of its common stock June 2: A down payment of $31.000 in cash was made on additional computer equipment that was purchased for $155.000. A five-year note was executed by Byte for the balance. June 4: Additional office equipment costing $400 was purchased on credit from Discount Computer Corporation June 8: Unsatisfactory office equipment costing $80 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $23,750 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 $7,500 was received 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. June 17: Cash of S6,600 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: Billed various miscellaneous local customers $4,100 for consulting services performed 14 June 21: A fax machine for the office was purchased for $850 cash. 15 June 21: Accounts payable in the amount of $320 were paid Byte of Accounting, Inc. garrett blackwell 1454 Description of transaction June 22: Paid the advertising bill that was received on June 17. 16. 17. June 22: Received a bill for $1,215 from Computer Parts and Repair Co. for repairs to the computer equipment. 18. June 22: Paid salaries of $810 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,285 was received on billings June 23: Purchased office supplies for $505 on credit. Record the purchase as an increase to the lassets 21. June 28: Billed $5.280 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,001 was received for billings. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 24 June 20: Paid salaries of $810 to equipment operators for the week ending June 25 25. June 30: Received a bill for the amount of $890 from O&G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.15 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. 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 8.75 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. Transaction Byte of Accounting, Inc. garrett blackwell 1454 Description of transaction A review of Byte’s job worksheets show that there are unbilled revenues in the amount of $9,250 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 $7.000. The office equipment has a scrap value of $500. The computer equipment has no serap value. Calculate the depreciation for one month. 33. A review of the payroll records show that unpaid salaries in the amount of $486 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 $124,000. On June 10. eight days later, $23,750 was repaid. Interest expense must be calculated on the $124,000 for eight days. In addition, interest expense on the $100,250 balance of the loan ($124.000 less $23.750 = $100,250) must be calculated for the 20 days remaining in the month of June. 1 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 to the yellow filled cell Description RTRS TI TUTTI Number Name Normal Balance 1110 Cash Debit 1120 Accounts Receivable Debit 1130 Prepaid Insurance Debit 1140 Prepaid Rent Debit 1150 Office Supplies Debit 1211 Office Equip. Debit 1212 Accum. Depr.-Office Equip. Credit 1311 Computer Equip. Debit 1312 Accum. Depr.-Computer Equip. Credit 1411 Building Cost Debit 1412 Accum. Depr.-Building Credit 1510 Land Debit 2101 Accounts Payable Credit 2102 Advanced Payments Credit 2103 Interest Payable Credit 2105 Salaries Payable Credit 2106 Income Taxes Payable Credit 2201 Mortgage Payable Credit 2202 Notes Payable Credit 3100 Capital Stock Credit 3200 Retained Earnings Credit 3300 Dividends Debit 3400 Income Summary Credit 4100 Computer & Consulting Revenue Credit 5010 Rent Expense Debit 5020 Salary Expense Debit 5030 Advertising Expense Debit 5040 Repairs & Maint. Expense Debit 5050 Oil & Gas Expense Debit 5080 Supplies Expense Debit 5090 Interest Expense Debit 5100 Insurance Expense Debit 5110 Depreciation Expense Debit 5120 Income Tax Expense Debit