Question

Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2,650 shares of its common stock to Jeremy after $32,480 in cash and computer equipment with a fair market value of $44,370 were received. 02. June 1: Byte of Accounting, Inc. issued 1,879 shares of its common stock after acquiring from Courtney $36,250 in cash, computer equipment with a fair market value of $17,400 and office equipment with a fair value of $841. 03. June 1: Byte of Accounting, Inc. acquired $58,000 in cash from Shahzad Mian and issued 2,000 shares of its common stock 04. June 2: A down payment of $35,000 in cash was made on additional computer equipment that was purchased for $175,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $300 was purchased on credit from Discount Computer Corporation. 06. 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 $26,750 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 $5,976 in cash. The effective date of the policy was June 16. 09. June 16: Computer consultation revenue of $7,750 was received 10. 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.

please complete the journal entries

please complete the journal entries

Answer 1

	Byte of Accounting Inc
	Journal entries
No.	Date	Name	Debit	Credit	Calculation
1	1-Jun	Cash	32,480.00
		Computer Equipment	44,370.00
		Common Stock		76,850.00
2	1-Jun	Cash	36,250.00
		Computer Equipment	17,400.00
		Office Equipment	841.00
		Common Stock		54,491.00
3	1-Jun	Cash	58,000.00
		Common Stock		58,000.00
4	2-Jun	Computer Equipment	175,000.00
		Cash		35,000.00
		Note Payable		140,000.00
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	26,750.00
		Cash		26,750.00
8	14-Jun	Prepaid Insurance	5,976.00		1 year wef June 16
		Cash		5,976.00
9	16-Jun	Cash	7,750.00
		Computer Consultation Revenue		7,750.00
10	16-Jun	Land	24,000.00
		Building	125,000.00		=149,000-24,000
		Cash		14,900.00
		Mortgage Payable		134,100.00	=149,000-14,900