Question

Data Tools window Help Format Edit View Insert Excel file Data Formulas Review View Home Insert Page Layout f income taxes are to be computed at the rate of 25 percent of net in 8.81 Byte of Accounting, Inc. 597.750 inch and with a first of Jet Byte of A gined 2365 ha ofisc herg Courney 541.250 in cash computer with a market of 514 S o ffice een with a value of 5 h at was A down payment of $10.000 purchased for ISO,000. A five-year cash was made on c omal was led by Byte for the balance e Additional office equipment costing 5400 was purchased on credit from Discount Computer Carpeeton sss June & Unuatisfactory office equipment conting S wastumed to Discount Computer for credite be applied against the outstanding balance owed by Byte June 10: Byte paid $23,000 on the balance it owed on the June 2purchase of computer equipment June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for 56.40 in cash The effective date of the policy was June 16 June 16: A check in the amount of $7.250 was received forc e nahodhadona ci Welcome Chart of Accounts Transactions General Journal eady Insert Format Tools Data Window Excel File Edit View ... Deos Home Insert Page Layout Formulas Data Review View

i need help forming the journal entries for the information above.

Answer 1

Byte of Accounting Inc Journal entries No. Date Account 1 1-Jun Cash Capital Stock Credit Calculation Debit 90,000.00 90,000.00 2 1-Jun Cash Computer Equipment Capital Stock 27,750.00 38,000.00 65,750.00 3 1-Jun Cash Computer Equipment Office Equipment Capital Stock 41,250.00 14,500.00 875.00 56,625.00 4 150,000.00 2-Jun Computer Equipment Cash Note Payable 30,000.00 120,000.00 5 400.00 4-Jun Office Equipment Accounts payable 400.00 6 80.00 8-Jun Accounts payable Office Equipment 80.00 7 23,000.00 10-Jun Note Payable Cash 23,000.00 8 6,480.00 1 year wef June 16 14-Jun Prepaid Insurance Cash 6,480.00 9 7,250.00 16-Jun Cash Computer Consultation Revenue 7,250.00 10 21,000.00 110,000.00 =131,000-21,000 16-Jun Land Building Cash Mortgage Payable 13,100.00 117,900.00 =131,000-13,100 11 7,500.00 June, July, Aug 17-Jun Prepaid Rent Cash 7,500.00 12 475.00 17-Jun Advertising expense Accounts Payable 475.00 13 320.00 21-Jun Accounts Payable Cash 320.00 14 800.00 21-Jun Office Equipment Cash 800.00 15 4,500.00 21-Jun Accounts Receivable Computer Consultation Revenue 4,500.00 16 960.00 22-Jun Salary expense Cash 960.00 17 1,140.00 22-Jun Repairs & Maintenance expense Accounts Payable 1,140.00 475.00 Cash 475.00 655.00 1923-Jun Office Supplies Accounts Payable 655.00 20 3,605.00 23-Jun Cash Accounts Receivable 3,605.00 21 5,280.00 28-Jun Accounts Receivable Computer Consultation Revenue 5,280.00 22 1,140.00 29-Jun Accounts Payable Cash 1,140.00 23 5,001.00 29-Jun Cash Accounts Receivable 5,001.00 24 960.00 29-Jun Salary expense Cash 960.00 25 1,015.00 30-Jun Oil & gas expense Accounts Payable 1,015.00 26 1,274.25 =(3,600+2,630+2,265) *0.15 30-Jun Dividends Cash 1,274.25

27 Adjusting entries 30-Jun Rent expense Prepaid rent 2,500.00 =7,500/3 2,500.00 28 385.00 =655-270 30-Jun Supplies expense Office Supplies 385.00 29 417.56 =117,900*8.50%*0.5/12 30-Jun Interest expense Interest Payable 417.56 30 270.00 =6,480/12*0.5 30-Jun Insurance expense Prepaid Insurance 270.00 31 5,625.00 30-Jun Accounts Receivable Computer Consultation Revenue 5,625.00 32 3,665.28 30-Jun Depreciation expense Accum. Depr.- Building Accum. Depr. - Computer Equip Accum. Depr. - Office Equip 272.49 3,375.00 17.80 =(110,000-7,000)/31.5*1/12 = (38,000+14,500+150,000)/5*1/12 = (875+400-80+800)-500)/7*1/12 33 576.00 30-Jun Salary expense Salaries Payable 576.00 34 966.67 30-Jun Interest expense Interest Payable (120,000*12%*8/360)+((120,000- 23,000) *12%*20/360) 966.67 35 2,331.12 30-Jun Income tax expense Income tax Payable =9,324.49*25% 2,331.12 Refer Income Statement 36 Closing entries 30-Jun Computer Consultation Revenue Income Summary 22,655.00 22,655.00 37 15,661.64 30-Jun Income Summary Rent expense Salary expense Advertising expense Repairs & maintenance expense Oil & gas expense Supplies expense Interest expense Insurance expense Depreciation expense Income tax expense 2,500.00 2,496.00 475.00 1,140.00 1,015.00 385.00 1,384.23 270.00 3,665.28 2,331.12 38 6,993.36 30-Jun Income Summary Retained Earnings 6,993.36 39 1,274.25 30-Jun Retained Earnings Dividends 1,274.25

Date Credit Date Credit Credit Debit Date Accounts Receivable 4,500.00 23-Jun 5,280.00 29-Jun 5,625.00 Debit Date Prepaid Insurance 6,480.00 30-Jun Date Debit Date Prepaid Rent 17-Jun 7,500.00 30-Jun 14-Jun 270.00 21-Jun 28-Jun 30-Jun 2,500.00 3,605.00 5,001.00 Byte of Accounting, Inc. T Accounts Date Debit Date Credit Cash 1-Jun 90,000.00 2-Jun 30,000.00 1-Jun 27,750.00 10-Jun 23,000.00 1-Jun 41,250.00 14-Jun 6,480.00 16-Jun 7,250.00 16-Jun 13,100.00 23-Jun 3,505.00 17-Jun 7,500.00 29-Jun 5,001.00 21-Jun 320.00 21-Jun 800.00 22-Jun 960.00 22-Jun 475.00 29-Jun 1,140.00 29-Jun 960.00 30-Jun 1,274.25 Bal. Bal. 88,846.75 Office Supplies 655.00 30-Jun Bal. 6,799.00 Land 16-Jun 21,000.00 Bal. 6,210.00 Building 16-Jun 110,000.00 5,000.00 Accum. Depr.- Building 30-Jun 23-Jun 385.00 272.49 Bal. Bal. 270.00 Computer Equipment 1-Jun 38,000.00 1-Jun 14,500.00 2-Jun 150,000.00 Bal. 21,000.00 Accum. Depr. - Computer Equipment 30-Jun 3,375.00 110,000.00 Office Equipment 875.00 400.00 8-Jun 800.00 Bal. 272.49 Accum. Depr.- Office Equipment 30-Jun 17.80 1-Jun 4-Jun 21-Jun 80.00 Bal. 3,375.00 Bal. 17.80 Advanced payment 1,995.00 Interest Payable 30-Jun 30-Jun Salaries Payable 30-Jun 576.00 202,500.00 Accounts Payable 80.00 4-Jun 320.00 17-Jun 475.00 22-Jun 1,140.00 23-Jun 30-Jun 8-Jun 21-Jun 417.56 966.67 400.00 475.00 1,140.00 655.00 1,015.00 29-Jun Bal. 1,670.00 576.00 Income Taxes Payable 30-Jun Bal. Mortagage Payable 16-Jun 117,900.00 Bal 1,384.23 Note Payable 23,000.00 2-Jun 120,000.00 2,331.12 10-Jun Bal. Capital Stock 1-Jun 1-Jun 1-Jun 90,000.00 65,750.00 56,625.00 2,331.12 117,900.00 97,000.00 Bal. 212,375.00 Bal. Retained Earnings 1,274.25 30-Jun Bal. Dividends 1,274.25 30-Jun Bal. Income Summary 15,661.64 30-Jun 6,993.36 30-Jun 6,993.36 30-Jun 1,274.25 22,655.00 30-Jun 30-Jun Bal. Rent expense 2,500.00 Advertising expense 475.00 30-Jun 17-Jun Bal. 5,719.11 Computer Consultation Revenue 16-Jun 7,250.00 21-Jun 4,500.00 28-Jun 5,280.00 30-Jun 22,655.00 30-Jun 5,625.00 22-Jun 29-Jun 30-Jun Salary expense 960.00 960.00 576.00 30-Jun 30-Jun 2,500.00 2,496.00 30-Jun 475.00 Bal. Bal. Bal. Repairs & maintenance expense 22-Jun 1,140.00 30-Jun 1,140.00 30-Jun Oil & gas expense 1,015.00 30-Jun 30-Jun Supplies expense 385.00 30-Jun 30-Jun 30-Jun Interest expense 417.56 966.67 30-Jun 1,015.00 385.00 1,384.23 Bal. Bal Bal. Bal. 30-Jun Insurance expense 270.00 30-Jun Income tax expense 2,331.12 30-Jun 30-Jun 30-Jun Depreciation expense 272.49 3,375.00 17.80 30-Jun 30-Jun 270.00 3,665.28 30-Jun 2,331.12 Bal. Bal. 2,331.12

Adjusting entries Debit Credit 5,625.00 Unadjusted Trial Balance Debit Credit 88,846.75 1,174.00 6,480.00 7,500.00 655.00 1,995.00 270.00 2,500.00 385.00 Adjusted Trial Balance Debit Credit 88,846.75 6,799.00 6,210.00 5,000.00 270.00 1,995.00 17.80 17.80 202,500.00 3,375.00 3,375.00 21,000.00 110,000.00 21,000.00 110,000.00 272.49 272.49 1,670.00 1,670.00 Byte of Accounting Inc Accounts Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Office Equipment Accum. Depr. - Office Equipment Computer Equipment Accum. Depr. - Computer Equipment Land Building Accum. Depr. - Building Accounts Payable Advanced Payment Interest Payable Salaries Payable Income tax Payable Mortgage Payable Note Payable Capital Stock Retained Earnings Dividends Income Statement Computer Consultation Revenue Rent expense Salary expense Advertising expense Repairs & maintenance expense Oil & gas expense Supplies expense Interest expense Insurance expense Depreciation expense Income tax expense Total 1,384.23 576.00 2,331.12 1,384.23 576.00 2,331.12 117,900.00 97,000.00 212,375.00 117,900.00 97,000.00 212,375.00 1,274.25 1,274.25 17,030.00 5,625.00 22,655.00 2,500.00 576.00 1,920.00 475.00 1,140.00 1,015.00 385.00 1,384.23 270.00 3,665.28 2,331.12 16,736.64 2,500.00 2,496.00 475.00 1,140.00 1,015.00 385.00 1,384.23 270.00 3,665.28 2,331.12 459,556.64 445,975.00 445,975.00 16,736.64 459,556.64

22,655.00 Byte of Accounting, Inc. For period ending 30th June Income Statement Computer Consultation Revenue Expenses: Rent expense Salary expense Advertising expense Repairs & maintenance expense Oil & gas expense Supplies expense Interest expense Insurance expense Depreciation expense Total Expenses 2,500.00 2,496.00 475.00 1,140.00 1,015.00 385.00 1,384.23 270.00 3,665.28 13,330.51 Net profit before taxes Income Tax Expense @ 25% Net profit 9,324.49 2,331.12 =9,324.49*25% 6,993.36 Statement of Retained Earnings For period ending 30th June Opening Balance Net Profit Less Dividends paid Ending Balance 6,993.36 (1,274.25) 5,719.11

Byte of Accounting, Inc. Balance Sheet As of 30th June Assets Current Assets: Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total Current Assets 88,846.75 6,799.00 6,210.00 5,000.00 270.00 107,125.75 1,995.00 (17.80) 1,977.20 202,500.00 (3,375.00) Fixed Assets Office Equipment Accum. Depr.- Office Equipment Office Equipment, Net Computer Equipment Accum. Depr. - Computer Equipment Computer Equipment, Net Land Building Accum. Depr.- Building Building, Net Total Fixed Assets Total Assets 199,125.00 21,000.00 110,000.00 (272.49) 109,727.51 331,829.72 438,955.47 1,670.00 Liabilities & Equity Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income tax Payable Total Current Liabilities 1,384.23 576.00 2,331.12 5,961.35 117,900.00 97,000.00 Mortgage Payable Note Payable Total Non-Current Liabilities Total Liabilities 214,900.00 220,861.35 Equity Capital Stock Retained Earnings Total Equity Total Liabilities & Equity 212,375.00 5,719.11 218,094.11 438,955.47