Question

29. The annual interest rate on the mortgage payable was 9.25 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 $5,375 for the period of June 28-30 32. The expense for depreciation follows: Building Computer Equipment- $3,051.00 Office Equipment- $246.00 $26.00 33. A review of the payroll records show that unpaid salaries in the amount of S576.00 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. The June interest expense from this note is $902.00. 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.)

june 14th prepaid insurance- 5,808.00

29. mortgage payable- 85,500.00

adjusting entries

journal entries

Answer 1

S. No.	Accounts Title	Debit	Credit
29	Interest Expense - Mortgage (85500*9.5%*0.5/12)	$            338.44
	Interest Payable		$              338.44
30	Insurance Expense (5808 * 0.50/12)	$            242.00
	Prepaid Insurance		$              242.00
31	Unbilled Accounts Receivable	$        5,375.00
	Revenue		$          5,375.00
32	Depreciation Expense - Building	$            246.00
	Accumulated Depreciation - Building		$              246.00
	Depreciation Expense - Computer Equipment	$        3,051.00
	Accumulated Depreciation - Computer Equipment		$          3,051.00
	Depreciation Expense - Office Equipment	$              26.00
	Accumulated Depreciation - Office Equipment		$                26.00
33	Salaries Expenses	$            576.00
	Outstanding Salaries		$              576.00
34	Interest Expense - Note Payable	$            902.00
	Interest Payable		$              902.00
35	Income tax	25% of Income before tax
	Income Tax Payable		25% of Income before tax
Since Income before tax cannot be computed from the given information, Amount cannot be entered.

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