Question

в Byte of Accounting, Inc. John Clark 3394 Description of transaction June 1: Byte of Accounting, Inc. issued 2,650 shares of its common stock to Jeremy after $25,300 in cash and computer equipment with a fair market value of $35,650 were received. Transaction 01. June 1: Byte of Accounting, Inc. issued 2.451 shares of its common stock after acquiring from Courtney S42,550 in cash, computer equipment with a fair market value of $12,880 and office equipment with a fair value of $943. 03. June 1: Byte of Accounting, Inc. acquired $55,200 in cash from John Clark and issued 2,400 shares of its common stock. 04. June 2: A down payment of $27,000 in cash was made on additional computer equipment that was purchased for $135,000. A five-year note was executed by Byte for the balance. June 4: Additional office equipment costing $500 was purchased on credit from Discount 05. Computer Corporation. Chart of Accounts Transactions General Journal Worksheet Income Statement Changes ir...

Answer 1

Byte of Accounting Inc Journal entries Account Debit Credit Calculation No. Date 1-Jun Cash 1 25,300.00 Computer Equipment 35,650.00 Common Stock 60,950.00 1-Jun Cash 2 42,550.00 Computer Equipment 12,880.00 Office Equipment 943.00 Common Stock 56,373.00 1-Jun Cash 55,200.00 55,200.00 Common Stock 135,000.00 4 2-Jun Computer Equipment Cash 27,000.00 Note Payable 108,000.00 4-Jun Office Equipment 500.00 Accounts payable 500,00 8-Jun Accounts payable 6 100.00 Office Equipment 100.00 10-Jun Note Payable 20,750.00 Cash 20,750.00 14-Jun Prepaid Insurance 5,640.00 1 year wef June 16 Cash 5,640.00 16-Jun Cash 8,250.00 9 Computer Consultation Revenue 8,250.00 16-Jun Land 10 20,000.00 Building 105,000.00 =125,000-20,000 Cash 12,500.00 Mortgage Payable 112,500.00 =125,000-12,500 17-Jun Prepaid Rent June, July 11 3,200.00 3,200.00 Cash 17-Jun Advertising expense 250.00 12 Accounts Payable 250.00 21-Jun Accounts Receivable 13 4.900,00 Computer Consultation Revenue 4,900.00 21-Jun Office Equipment 14 775.00 Cash 775.00 21-Jun Accounts Payable 15 400.00 Cash 400.00 22-Jun Accounts Payable 16 250.00 Cash 250.00 22-Jun Repairs & Maintenance expense 1,190.00 17 Accounts Payable 1,190.00 22-Jun Salary expense 18 935.00 935.00 Cash 23-Jun Cash 19 3,925.00 3,925.00 Accounts Receivable 23-Jun Office Supplies 20 505.00 Accounts Payable 505.00 21 28-Jun Accounts Receivable 5,910.00 5,910.00 Computer Consultation Revenue 22 29-Jun Cash 5,600.00 Accounts Receivable 5,600.00 29-Jun Accounts Payable 23 1,190.00 Cash 1,190.00 29-Jun Salary expense 24 935.00 Cash 935.00 30-Jun Oil & gas expense 25 790.00 Accounts Payable 790.00 30-Jun Dividends 2,650+2,451+2,400)*0.21 1,575.21 Cash 1,575.21 26

Adjusting entries -3,200/2 30-Jun Rent expense 27 1,600.00 Prepaid rent 1,600.00 30-Jun Supplies expense 28 303.00 -505-202 Office Supplies 303.00 30-Jun Interest expense 112,500*7.25%*0.5/12 29 339.84 Interest Payable 339.84 =5,640/12*0.5 30-Jun Insurance expense 30 235.00 Prepaid Insurance 235.00 30-Jun Accounts Receivable 31 5,375.00 Computer Consultation Revenue 5,375.00 30-Jun Depreciation expense 3,336.03 32 Accum. Depr. Building 257.94 (105,000-7,500)/31.5*1/12 3,058.83 35,650+12,880+135,000)/5*1/12 19.26 (943+500-100+775)-500)/7 1/12 Accum. Depr. - Computer Equip Accum. Depr. - Office Equip 30-Jun Salary expense 33 561.00 Salaries Payable 561.00 (108,000*12%*8/360)+( (108,000- 20,750) 12% 20/360) 30-Jun Interest expense 34 869.67 Interest Payable 869.67 - 13,090.46*25% 30-Jun Income tax expense 35 3,272.61 Income tax Payable 3,272.61 Refer Income Statement Closing entries 36 30-Jun Computer Consultation Revenue 24,435.00 24,435.00 Income Summary 30-Jun Income Summary 37 14,617.16 Rent expense 1,600.00 2,431.00 Salary expense Advertising expense 250.00 Repairs & maintenance expense 1,190.00 Oil & gas expense 790.00 Supplies expense 303.00 Interest expense 1,209.51 Insurance expense 235.00 Depreciation expense 3,336.03 Income tax expense 3,272.61 30-Jun Income Summary 38 9,817.84 Retained Earnings 9,817.84 30-Jun Retained Earnings 39 1,575.21 Dividends 1,575.21

Byte of Accounting, Inc. T Accounts Date Date Date Date Credit Debit Credit Date Debit Credit Date Date Debit Credit Date Debit Cash Accounts Receivable Prepaid Insurance Prepaid Rent 2-Jun 27,000.00 10-Jun 20,750.00 4,900.00 1,600.00 1-Jun 55,200.00 21-Jun 23-Jun 3,925.00 14-Jun 5,640.00 30-Jun 235.00 17-Jun 3,200.00 30-Jun 25,300.00 42,550.00 28-Jun 5,910.00 5,600.00 1-Jun 29-Jun 1-Jun 14-Jun 5,640.00 30-Jun 5,375.00 16-Jun 8,250.00 16-Jun 12,500.00 3,925.00 23-Jun 17-Jun 3,200.00 29-Jun 5,600.00 21-Jun 400.00 21-Jun 775.00 22-Jun 935.00 22-Jun 250.00 29-Jun 1,190.00 29-Jun 935.00 30-Jun 1,575.21 1,600.00 Accum. Depr. - Building Bal Bal. 65,674.79 6,660.00 Bal. 5,405.00 Bal. office Supplies Land Building 16-Jun 20,000.00 16-Jun 105,000.00 23-Jun 505.00 30-Jun 303.00 30-Jun 257.94 Bal. 202.00 Bal. 257.94 Bal 20,000.00 Bal. 105,000.00 Computer Equipment Office Equipment 943.00 Accum. Depr. Computer Equipment 3,058.83 Accum. Depr. Office Equipment 1-Jun 35,650.00 30-Jun 1-Jun 30-Jun 19.26 100.00 4-Jun 1-Jun 12,880.00 500.00 8-Jun 2-Jun 135,000.00 21-Jun 775.00 183,530.00 Bal. Bal Advanced payment Bal Salaries Payable 3,058.83 Bal. 2,118.00 19.26 Accounts Payable Interest Payable 8-Jun 100.00 4-Jun 500.00 30-Jun 339.84 30-Jun 561.00 21-Jun 400.00 17-Jun 250.00 30-Jun 869.67 22-Jun 1,190.00 250.00 22-Jun 29-Jun 23-Jun 505.00 1,190.00 30-Jun 790.00 Bal. Bal. 1,295.00 |Bal. Bal. 561.00 1,209.51 Income Taxes Payable Mortagage Paуable Note Payable Common Stock 16-Jun 112,500.00 20,750.00 2-Jun 108,000.00 30-Jun 3,272.61 10-Jun 1-Jun 55,200.00 1-Jun 60,950.00 56,373.00 1-Jun Bal. Bal Bal. Bal. 3,272.61 112,500.00 87,250.00 172,523.00 Retained Earnings Dividends Income Summary 1,575.21 24,435.00 30-Jun 1,575.21 30-Jun 9,817.84 30-Jun 30-Jun 1,575.21 30-Jun 14,617.16 30-Jun 30-Jun 9,817.84 Bal. 8,242.63 Bal. Bal. Advertising expense Rent expense Salary expense 935.00 Computer Consultation Revenue 16-Jun 30-Jun 1,600.00 17-Jun 8,250.00 22-Jun 250.00 4.900.00 21-Jun 29-Jun 935.00 28-Jun 5,910.00 30-Jun 561.00 5,375.00 30-Jun 24,435.00 30-Jun 30-Jun 1,600.00 30-Jun 2,431.00 30-Jun 250.00 Bal. Bal. Bal Bal. Supplies expense Repairs & maintenance expense Oil & gas expense Interest expense 790.00 22-Jun 1,190.00 30-Jun 30-Jun 303.00 30-Jun 339.84 30-Jun 1,190.00 30-Jun 790.00 30-Jun 303.00 30-Jun 869.67 30-Jun 1,209.51 Bal. Bal Bal Bal. Depreciation expense Insurance expense Income tax expense 30-Jun 235.00 30-Jun 257.94 30-Jun 3,272.61 3,058.83 30-Jun 30-Jun 3,336.03 3,272.61 30-Jun 235.00 19.26 30-Jun 30-Jun Bal. Bal Bal. 3,272.61

Unadjusted Trial Balance Byte of Accounting Inc Adjusting entries Adjusted Trial Balance Accounts Debit Credit Debit Credit Debit Credit Cash 65,674.79 65,674.79 Accounts Receivable 1,285.00 5,375.00 6,660.00 Prepaid Insurance 5,640.00 235.00 5,405.00 Prepaid Rent Office Supplies 1,600.00 1,600.00 3,200.00 505.00 303.00 202.00 Office Equipment 2,118.00 2,118.00 Accum. Depr. - Office Equipment 19.26 19.26 Computer Equipment 183,530.00 183,530.00 3,058.83 3,058.83 Accum. Depr. - Computer Equipment Land 20,000.00 20,000.00 Building Accum. Depr. - Building 105,000.00 105,000.00 257.94 257.94 Accounts Payable 1,295.00 1,295.00 Advanced Payment Interest Payable Salaries Payable 1,209.51 1,209.51 561.00 561.00 Income tax Payable 3,272.61 3,272.61 Mortgage Payable Note Payable 112,500.00 112,500.00 87,250.00 87,250.00 Common Stock 172,523.00 172,523.00 Retained Earnings Dividends 1,575.21 1,575.21 Income Statement Computer Consultation Revenue 5,375.00 24,435.00 19,060.00 Rent expense 1,600.00 1,600.00 Salary expense 1,870.00 561.00 2,431.00 Advertising expense Repairs & maintenance expense 250.00 250.00 1,190.00 1,190.00 Oil & gas expense 790,00 790.00 Supplies expense 303.00 303.00 Interest expense 1,209.51 1,209.51 Insurance expense 235.00 235.00 Depreciation expense 3,336.03 3,336.03 Income tax expense 3,272.61 3,272.61 Total 392,628.00 392,628.00 15,892.16 15,892.16 406,382.16 406,382.16

Byte of Accounting, Inc. For period ending 30th June Income Statement Computer Consultation Revenue 24,435.00 Expenses: Rent expense 1,600.00 Salary expense 2,431.00 Advertising expense 250.00 Repairs & maintenance expense 1,190.00 Oil & gas expense 790.00 Supplies expense 303.00 Interest expense 1,209.51 Insurance expense 235.00 Depreciation expense 3,336.03 Total Expenses 11,344.54 Net profit before taxes 13,090.46 Income Tax Expense @ 25% 3,272.61 13,090.46*25% Net profit 9,817.84 Statement of Retained Earnings For period ending 30th June Opening Balance Net Profit 9,817.84 (1,575.21) Less Dividends Ending Balance 8,242.63