Question

transactions to a general ledger

A- A+ But Copy Format a 3 Merge & Center. S x June 8: Unsatisfactory office equipment costing $60 was returned to Discount Computer for B15 J el: tyw of Accounting, Inc. quired 574,800 in cash from Lauryn and issued 3.400 shares of is e ther Jusel: tyw of Accounting, Inc. issued 2,370 shares of its common stock to the N $23.540 inch and computer equipment with a firmarket value of $33,000 were received June 1: Byte of Accounting, Inc. issued 1,831 shares of its common stock e quiring from Courtney $27,500 in cash, computer equipment with a fair market value of $12,320 and office equipment with a fair value of $902 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 w e d by Byte for the balance June 4: Additional office equipment costing 5300 was purchased on credit from Discount Computer Corporation 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 June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $4,968 in cash. The effective date of the policy was June 16 June 16 A check in the amount of $6,750 was received for consulting revenue 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. who Introduction w FAQ ait for fortune Welcome and Ann Put them Chart of Accounts in the Pen Transactions Gener MacB

Answer 1

	Byte of Accounting Inc
	Journal entries
No.	Date	Account	Debit	Credit	Calculation
1	1-Jun	Cash	74,800.00
		Capital Stock		74,800.00
2	1-Jun	Cash	23,540.00
		Computer Equipment	33,000.00
		Capital Stock		56,540.00
3	1-Jun	Cash	27,500.00
		Computer Equipment	12,320.00
		Office Equipment	902.00
		Capital Stock		40,722.00
4	2-Jun	Computer Equipment	165,000.00
		Cash		33,000.00
		Note Payable		132,000.00
5	4-Jun	Office Equipment	300.00
		Accounts payable		300.00
6	8-Jun	Accounts payable	60.00
		Office Equipment		60.00
7	10-Jun	Note Payable	25,250.00
		Cash		25,250.00
8	14-Jun	Prepaid Insurance	4,968.00		1 year wef June 16
		Cash		4,968.00
9	16-Jun	Cash	6,750.00
		Computer Consultation Revenue		6,750.00
10	16-Jun	Land	22,000.00
		Building	115,000.00		=137,000-22,000
		Cash		13,700.00
		Mortgage Payable		123,300.00	=137,000-13,700
11	17-Jun	Prepaid Rent	6,000.00		June , July , Aug
		Cash		6,000.00
12	17-Jun	Advertising expense	275.00
		Accounts Payable		275.00
13	21-Jun	Accounts Payable	240.00
		Cash		240.00
14	21-Jun	Office Equipment	775.00
		Cash		775.00
15	21-Jun	Accounts Receivable	4,700.00
		Computer Consultation Revenue		4,700.00
16	22-Jun	Salary expense	910.00
		Cash		910.00
17	22-Jun	Repairs & Maintenance expense	1,265.00
		Accounts Payable		1,265.00
18	22-Jun	Accounts Payable	275.00
		Cash		275.00
19	23-Jun	Office Supplies	680.00
		Accounts Payable		680.00
20	23-Jun	Cash	3,765.00
		Accounts Receivable		3,765.00
21	28-Jun	Accounts Receivable	5,805.00
		Computer Consultation Revenue		5,805.00
22	29-Jun	Accounts Payable	1,265.00
		Cash		1,265.00
23	29-Jun	Cash	5,500.00
		Accounts Receivable		5,500.00
24	29-Jun	Salary expense	910.00
		Cash		910.00
25	30-Jun	Oil & gas expense	915.00
		Accounts Payable		915.00
26	30-Jun	Dividends	1,564.20		=(3,400+2,570+1,851)*0.20
		Cash		1,564.20

27 Adjusting entries 30-Jun Rent expense Prepaid rent 2,000.00 =6,000/3 2,000.00 28 399.00 =680-281 30-Jun Supplies expense Office Supplies 399.00 29 385.31 =123,300*7.50%*0.5/12 30-Jun Interest expense Interest Payable 385.31 30 207.00 -4,968/12*0.5 30-Jun Insurance expense Prepaid Insurance 207.00 31 5,375.00 30-Jun Accounts Receivable Computer Consultation Revenue 5,375.00 32 3,808.97 30-Jun Depreciation expense Accum. Depr.- Building Accum. Depr. - Computer Equip Accum. Depr. - Office Equip 284.39 3,505.33 19.25 =(115,000-7,500)/31.5*1/12 =(33,000+12,320+165,000)/5*1/12 = (902+300-60+775)-300)/7*1/12 33 546.00 30-Jun Salary expense Salaries Payable 546.00 34 1,063.67 30-Jun Interest expense Interest Payable (132,000*12%*8/360)+((132,000- 25,250) *12%*20/360) 1,063.67 35 2,486.26 30-Jun Income tax expense Income tax Payable =9,945.05*25% 2,486.26 Refer Income Statement 36 Closing entries 30-Jun Computer Consultation Revenue Income Summary 22,630.00 22,630.00 37 15,171.22 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 2,000.00 2,366.00 275.00 1,265.00 915.00 399.00 1,448.98 207.00 3,808.97 2,486.26 38 7,458.78 30-Jun Income Summary Retained Earnings 7,458.78 39 1,564.20 30-Jun Retained Earnings Dividends 1,564.20

Date Credit Date Credit Date Credit Debit Date Accounts Receivable 4,700.00 23-Jun 5,805.00 29-Jun 5,375.00 Debit Date Prepaid Insurance 4,968.00 30-Jun Debit Date Prepaid Rent 6,000.00 30-Jun 14-Jun 207.00 17-Jun 21-Jun 28-Jun 30-Jun 2,000.00 3,765.00 5,500.00 Byte of Accounting, Inc. T Accounts Date Debit Date Credit Cash 1-Jun 74,800.00 2-Jun 33,000.00 1-Jun 23,540.00 10-Jun 25,250.00 1-Jun 27,500.00 14-Jun 4,968.00 16-Jun 6,750.00 16-Jun 13,700.00 23-Jun 3,765.00 17-Jun 6,000.00 29-Jun 5,500.00 21-Jun 240.00 21-Jun 775.00 22-Jun 910.00 22-Jun 275.00 29-Jun 1,265.00 29-Jun 910.00 30-Jun 1,564.20 Bal. Bal. 4.000.00 52,997.80 Office Supplies 680.00 30-Jun Bal. 6,615.00 Land 16-Jun 22,000.00 Bal. 4,761.00 Building 16-Jun 115,000.00 Accum. Depr.- Building 30-Jun 23-Jun 399.00 284.39 Bal. Bal. 284.39 Bal. 281.00 Computer Equipment 1-Jun 33,000.00 1-Jun 12,320.00 2-Jun 165,000.00 Bal. 22,000.00 Accum. Depr. - Computer Equipment 30-Jun 3,505.33 115,000.00 Office Equipment 902.00 300.00 8-Jun 775.00 Accum. Depr.- Office Equipment 30-Jun 19.25 1-Jun 4-Jun 21-Jun 60.00 Bal. 3,505.33 Bal. 19.25 Bal. Advanced payment 1,917.00 Interest Payable 30-Jun 30-Jun Salaries Payable 30-Jun 546.00 210,320.00 Accounts Payable 60.00 4-Jun 240.00 17-Jun 275.00 22-Jun 1,265.00 23-Jun 30-Jun 8-Jun 21-Jun 22-Jun 29-Jun 385.31 1,063.67 300.00 275.00 1,265.00 680.00 915.00 Bal. 1,595.00 546.00 Income Taxes Payable 30-Jun Bal. Mortagage Payable 16-Jun 123,300.00 Bal. 1,448.98 Note Payable 25,250.00 2-Jun 132,000.00 2,486.26 10-Jun Bal. Capital Stock 1-Jun 1-Jun 1-Jun 74,800.00 56,540.00 40,722.00 2,486.26 123,300.00 106,750.00 Bal. 172,062.00 Bal. Retained Earnings 1,564.20 30-Jun Bal. Dividends 1,564.20 30-Jun Bal. Income Summary 15,171.22 30-Jun 7,458.78 30-Jun 7,458.78 30-Jun 1,564.20 22,630.00 30-Jun 30-Jun Bal. Rent expense 2,000.00 Advertising expense 275.00 30-Jun 17-Jun Bal. 5,894.58 Computer Consultation Revenue 16-Jun 6,750.00 21-Jun 4,700.00 28-Jun 5,805.00 30-Jun 22,630.00 30-Jun 5,375.00 22-Jun 29-Jun 30-Jun Salary expense 910.00 910.00 546.00 30-Jun 30-Jun 2,000.00 2,366.00 30-Jun 275.00 Bal. Bal. Bal. Repairs & maintenance expense 22-Jun 1,265.00 30-Jun 1,265.00 30-Jun Oil & gas expense 915.00 30-Jun 30-Jun Supplies expense 399.00 30-Jun 30-Jun 30-Jun Interest expense 385.31 1,063.67 30-Jun 915.00 399.00 1,448.98 Bal. Bal. Bal. Bal. 30-Jun Insurance expense 207.00 30-Jun Income tax expense 2,486.26 30-Jun 30-Jun 30-Jun Depreciation expense 284.39 3,505.33 19.25 30-Jun 30-Jun 207.00 3,808.97 30-Jun 2,486.26 Bal. Bal. Bal. 2,486.26

Adjusting entries Debit Credit 5,375.00 Unadjusted Trial Balance Debit Credit 52,997.80 1,240.00 4,968.00 6,000.00 680.00 1,917.00 207.00 2,000.00 399.00 Adjusted Trial Balance Debit Credit 52,997.80 6,615.00 4,761.00 4,000.00 281.00 1,917.00 19.25 210,320.00 3,505.33 22,000.00 115,000.00 284.39 1,595.00 19.25 210,320.00 3,505.33 22,000.00 115,000.00 284.39 1,595.00 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 1,448.98 546.00 2,486.26 1,448.98 546.00 2,486.26 123,300.00 106,750.00 172,062.00 123,300.00 106,750.00 172,062.00 1,564.20 1,564.20 17,255.00 5,375.00 22,630.00 2,000.00 546.00 1,820.00 275.00 1,265.00 915.00 399.00 1,448.98 207.00 3,808.97 2,486.26 16,271.22 2,000.00 2,366.00 275.00 1,265.00 915.00 399.00 1,448.98 207.00 3,808.97 2,486.26 434,627.22 420,962.00 420,962.00 16,271.22 434,627.22

22,630.00 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 2,000.00 2,366.00 275.00 1,265.00 915.00 399.00 1,448.98 207.00 3,808.97 12,684.95 Net profit before taxes Income Tax Expense @ 25% Net profit 9,945.05 2,486.26 =9,945.05*25% 7,458.78 Statement of Retained Earnings For period ending 30th June Opening Balance Net Profit Less Dividends paid Ending Balance 7,458.78 (1,564.20) 5,894.58