Question

The Byte of Accounting Corporation (Byte) sells turn-key computer systems to midsize businesses on account. Byte was started by Lauryn on January 1 of last year when she was issued 2,200 shares of stock.

- Perpetual FIFO will be used for the Super Toners.

- The allowance method is used to account for bad debts.

Transaction 01: December 1: an investor made an investment in Byte by purchasing 2,700 shares of its common stock paying $72,900 in cash. The par value of the common stock was $19.00 per share.

Transaction 02:  December 3:  Byte purchased a Ricoh Color Copier for $5,300.00.   The invoice number was 61298.  Byte paid 10% in cash and signed a three-year note for the remaining balance.  Interest at a rate of 6% a year will be paid semiannually.

Transaction 03: December 3: Check # 6001 for $2,400.00 was issued by Byte to pay for rent of the office space for December.

Transaction 04: December 3:  Byte received 13 Super Toners for resale to   customers at a cost of $20.00 per toner.  The invoice number was 7249, and requires payment within 30 days.

Transaction 05: December 10: Byte sold 8 Super Toners to a customer on account for $57.00 each. The Sales order number was 12100.

Transaction 06: December 10:  Byte records the cost of the 8 Super Toners sold using FIFO. The sales order number was 12100.

Transaction 07: December 11: Check # 6002 was issued to pay salaries of $2,000.00 to equipment operators. (Ignore payroll taxes at this time.)

Transaction 08: December 14: Check # 6003 was issued to purchase a one-year insurance policy covering its computer equipment.  The cost of the insurance is $6,360.00 and paid to Seth's Insurance.   The effective date of the policy was December 16 and the invoice number was 2387.

Transaction 09: December 15: Byte purchased $400.00 of supplies on account.

Transaction 10: December 16: Byte received 5 Super Toners purchased for resale to customers.   The cost was $22.00 per toner.  The invoice number was 7959, and payment is required in 30 days.

Transaction 11: December 17: Byte was informed that Mr. Madoff who has an account with the company will never pay the $590.00 he owes.  Record the transaction to write off Mr. Madoff's accounts receivable account using the allowance method.

Transaction 12: December 17: Byte received invoice number 26354 in the amount of $725.00 from the local newspaper for advertising.

Transaction 13: December 18: Check # 6004 was issued to pay Accounts Payable in the amount of $1,120.00.

Transaction 14: December 19:  Byte sold 6 Super toners to a customer on account for $57.00 each. The sales order number was 12101.

Transaction 15: December 19: Byte records the cost of the 6 Super Toners sold using FIFO. The sales order number was 12101.

Transaction 16: December 21:  Byte received an emailed invoice in the amount of $6,400.00 for computers that were drop shipped and received today.

Transaction 17: December 21:   Byte billed various miscellaneous local customers $12,800.00 for computers that were delivered today.

Transaction 18: December 21:  Record the cost of the computers that were sold today.

Transaction 19: December 22:   Check # 6005 was issued to pay salaries of $2,000.00 to equipment operators. (Ignore payroll taxes at this time.)

Transaction 20: December 22:   Byte received a bill for $1,265.00 from Computer Parts and Repair Co. for repairs to the computer equipment.   The invoice number was 43254.

Transaction 21: December 22:   Check # 6006 was issued to pay the advertising bill that was previously received and recorded from the local newspaper for advertising, invoice number 26354.

Transaction 22: December 22: Byte received 12 Super Toners purchased for resale to customers.  The cost was $24.00 per toner.   The invoice number was 8988, and payment is required in 30 days.

Transaction 23: 12/23: Byte received $21,575 from customers billed when they received delivery.

Transaction 24: December 23:  Byte received an emailed invoice in the amount of $7,650.00 for computers that were drop shipped and received today.

Transaction 25: December 28:   Byte billed various miscellaneous local customers $15,300.00 for computers that were delivered today.

Transaction 26: December 28:   Record the cost of the computers that were sold today.

Transaction 27: December 28: Byte paid the bill that was previously received and recorded from Computer Parts and Repairs Co with Check # 6007. The invoice number was 43254.

FOR JOURNAL ENTRY: #15, #26 and #27 ... I need an answer with the following:

1) Transaction Name

2) Transaction Debit amount

3) Transaction Credit amount

**For Journal Entry #15, answer is NOT 6x20=120**

Answer 1

PAGE NO.: DATE: 1 Transaction 15 130 130 Cost of Goods sold Ale To Super Toners All Explanation: out of the 1st 13 toners receiced at the price 8 were sold and the balance left was 5. After that, 5 more were received at the price of $22. Now, 6 were sold te 5 which were received first at the rate of $20 and remaining one at the price Transaction 264 Transaction 27: Dear sir, there is an issue regarding date in the queastion, specifically in Transaction 24. 28 other wise, the transaction 26 thua will be the same as Transaction 18