Question

i need help finding #32 & statement in changes of retained earnings

Byte of Accounting, Inc. Description of transaction June 1: Byte of Accounting, Inc. issued 2.660 shares of its common stock to Jeremy after $29,700 in cash and computer equipment with a fair market value of $42.120 were received June 1: Byte of Accounting, Inc. issued 2.562 shares of its common stock after acquiring from Courtney $55.350 in cash, computer equipment with a fair market value of $12.960 and office equipment with a fair value of 5864 and issued 2,000 shares of June 1: Byte of Accounting, Inc. acquired S54,000 in cash from 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 S500 was purchased on credit from Discount Computer Corporation. June 8: Unsatisfactory office equipment costing $100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. June 10: Byte paid $23,750 on the balance it owed on the June 2 purchase of computer equipment June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $5,136 in cash. The effective date of the policy was June 16. June 16: Computer consultation revenue of $7.250 was received June 16: Byte purchased a building and the land it is on for $149,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $24,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $14.900 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. June 17: Cash of $6,300 was paid for rent for June, July and August. Put the total amount into the Prepaid Rent account June 17: Received a bill of $475 from the local newspaper for advertising June 21: Billed various miscellaneous local customers S4,000 for consulting services performed June 21: A fax machine for the office was purchased for S700 cash. June 21: Accounts payable in the amount of S400 were paid.

Answer 1

32 30-Jun 3,828.75 5110 Depreciation expense 1312 Accum. Depr. - Building 1212 Accum. Depr. - Computer Equip 1412 Accum. Depr. - Office Equip Depreciation expense Depreciation expense Depreciation expense Depreciation expense 308.20 3,501.33 19.21 =(125,000-8,500)/31.5*1/12 =(42,120+12,960+155,000)/5*1/12 =((864+500-100+700) - 350)/7*1/12

Statement of Changes in Retained Earnings For the month ending June 30, 2019 Balance, Beginning of Period Net Income 7,269.89 Dividends Balance, End of Period 7,269.89 (1,299.96) 5,969.93

Few journal entries need to be corrected - highlighted in orange color below:

Credit N 10 Byte of Accounting Inc Journal entries Date Account Name 16-Jun 1510 Land 1411 Building 1110 Cash 2201 Mortgage Payable Description Purchase of land & building Purchase of land & building Purchase of land & building Purchase of land & building Debit 24,000.00 125,000.00 Calculation Lot is $24,000 and not building =149,000-24,000 14,900.00 134,100.00 =149,000-14,900 15 21-Jun 400.00 2101 Accounts Payable 1110 Cash Payment of Accounts Payable Payment of Accounts Payable 400.00 Adjusting entries 27 30-Jun 5010 Rent expense 1140 Prepaid rent 2,100.00 =6,300/3 Rent expense recognised Rent expense recognised 2,100.00 28 30-Jun 385.00 =655-270 5080 Supplies expense 1150 Office Supplies Supplies expense Supplies expense 385.00 29 30-Jun 419.06 =134,100*7.50%*0.5/12 5090 Interest expense 2103 Interest Payable Interest adjustment Interest adjustment 419.06 30 30-Jun 214.00 =5,136/12*0.5 5100 Insurance expense 1130 Prepaid Insurance Insurance adjustment Insurance adjustment 214.00 31 30-Jun 5,750.00 1120 Accounts Receivable Unbilled revenue 4100 Computer Consultation Revenue Unbilled revenue 5,750.00 32 30-Jun 3,828.75 5110 Depreciation expense 1312 Accum. Depr.- Building 1212 Accum. Depr. - Computer Equip 1412 Accum. Depr. - Office Equip Depreciation expense Depreciation expense Depreciation expense Depreciation expense 308.20 3,501.33 19.21 =(125,000-8,500)/31.5*1/12 =(42,120+12,960+155,000)/5*1/12 = (864+500-100+700)-350)/7*1/12 33 30-Jun 531.00 5020 Salary expense 2105 Salaries Payable Salary expense Salary expense 531.00 34 30-Jun 999.00 5090 Interest expense 2103 Interest Payable Interest adjustment Interest adjustment (124,000*12%*8/360)+(124,000- 23,750) *12%*20/360) 999.00 35 30-Jun 2,423.30 5120 Income tax expense 2106 Income tax Payable Income tax expense Income tax expense =9,693.19*25% 2,423.30 Refer Income Statement Closing entries 36 30-Jun 4100 Computer Consultation Revenue Closing revenue 3400 Income Summary Closing revenue 22,595.00 22,595.00 37 30-Jun 15,325.11 3400 Income Summary 5010 Rent expense 5020 Salary expense 5030 Advertising expense 5040 Repairs & maintenance expense 5050 Oil & gas expense 5080 Supplies expense 5090 Interest expense 5100 Insurance expense 5110 Depreciation expense 5120 Income tax expense Closing expense Closing expense Closing expense Closing expense Closing expense Closing expense Closing expense Closing expense Closing expense Closing expense Closing expense 2,100.00 2,301.00 475.00 1,290.00 890.00 385.00 1,418.06 214.00 3,828.75 2,423.30 38 30-Jun 7,269.89 3400 Income Summary 3200 Retained Earnings Closing Income Summary Closing Income Summary 7,269.89 39 30-Jun 1,299.96 3200 Retained Earnings 3300 Dividends Closing Dividends Closing Dividends 1,299.96

Date Credit Date Credit Date Credit Debit Date Accounts Receivable 4,000.00 23-Jun 5,595.00 29-Jun 5,750.00 Debit Date Prepaid Insurance 5,136.00 30-Jun Debit Date Prepaid Rent 6,300.00 30-Jun 14-Jun 214.00 17-Jun 21-Jun 28-Jun 30-Jun 2,100.00 3,205.00 5,300.00 Byte of Accounting, Inc. T Accounts Date Debit Date Credit Cash 1-Jun 54,000.00 2-Jun 31,000.00 1-Jun 29,700.00 10-Jun 23,750.00 1-Jun 55,350.00 14-Jun 5,136.00 16-Jun 7,250.00 16-Jun 14,900.00 23-Jun 3,205.00 17-Jun 6,300.00 29-Jun 5,300.00 21-Jun 400.00 21-Jun 700.00 22-Jun 885.00 22-Jun 475.00 29-Jun 1,290.00 29-Jun 885.00 30-Jun 1,299.96 Bal. Bal. 67,784.04 Office Supplies 655.00 30-Jun Bal. 6,840.00 Land 16-Jun 24,000.00 Bal. 4,922.00 Building 16-Jun 125,000.00 4,200.00 Accum. Depr.- Building 30-Jun 23-Jun 385.00 308.20 Bal. Bal. 270.00 Computer Equipment 1-Jun 42,120.00 1-Jun 12,960.00 2-Jun 155,000.00 Bal. 24,000.00 Accum. Depr. - Computer Equipment 30-Jun 3,501.33 125,000.00 Office Equipment 864.00 500.00 8-Jun 700.00 Bal. 308.20 Accum. Depr. - Office Equipment 30-Jun 19.21 1-Jun 4-Jun 21-Jun 100.00 Bal. 3,501.33 Bal. 19.21 Advanced payment 1,964.00 Interest Payable 30-Jun 30-Jun Salaries Payable 30-Jun 531.00 210,080.00 Accounts Payable 100.00 4-Jun 400.00 17-Jun 475.00 475.00 22-Jun 1,290.00 23-Jun 30-Jun 8-Jun 21-Jun 22-Jun 29-Jun 419.06 999.00 500.00 475.00 1,290.00 655.00 890.00 Bal. 1,545.00 531.00 Income Taxes Payable 30-Jun Bal. Mortagage Payable 16-Jun 134,100.00 Bal 1,418.06 Note Payable 23,750.00 2-Jun 124,000.00 2,423.30 10-Jun Bal. Common Stock 1-Jun 1-Jun 1-Jun 54,000.00 71,820.00 69,174.00 2,423.30 134,100.00 100,250.00 Bal. 194,994.00 Bal. Retained Earnings 1,299.96 30-Jun Bal. Dividends 1,299.96 30-Jun Bal. Income Summary 15,325.11 30-Jun 7,269.89 30-Jun 7,269.89 30-Jun 1,299.96 22,595.00 30-Jun 30-Jun Bal. Rent expense 2,100.00 Advertising expense 475.00 30-Jun 17-Jun Bal. 5,969.93 Computer Consultation Revenue 16-Jun 7,250.00 21-Jun 4,000.00 28-Jun 5,595.00 30-Jun 22,595.00 30-Jun 5,750.00 22-Jun 29-Jun 30-Jun Salary expense 885.00 885.00 531.00 30-Jun 30-Jun 2,100.00 2,301.00 30-Jun 475.00 Bal. Bal. Bal. Repairs & maintenance expense 22-Jun 1,290.00 30-Jun 1,290.00 30-Jun Oil & gas expense 890.00 30-Jun 30-Jun Supplies expense 385.00 30-Jun 30-Jun 30-Jun Interest expense 419.06 999.00 30-Jun 890.00 385.00 1,418.06 Bal. Bal. Bal. Bal. 30-Jun Insurance expense 214.00 30-Jun Income tax expense 2,423.30 30-Jun 30-Jun 30-Jun Depreciation expense 308.20 3,501.33 19.21 30-Jun 30-Jun 214.00 3,828.75 30-Jun 2,423.30 Bal. Bal. Bal. 2,423.30

22,595.00 Byte of Accounting, Inc. For the month ending June 30, 2019 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 2,100.00 2,301.00 475.00 1,290.00 890.00 385.00 1,418.06 214.00 3,828.75 12,901.81 Net Income before taxes Income Tax Expense @ 25% Net Income 9,693.19 2,423.30 =9,693.19*25% 7,269.89