Question

What are the proper descriptions for these journal entries?

Byte of Accounting, Inc. Peyton Tavlor 7864 Transaction Description of transaction June 1: Byte of Accounting, Inc. acquired $70,200 in cash from Lauryn and issued 2,600 shares of is common stock June 1: Byte of Accounting, Inc. issued 2,580 shares of its common stock to Peyton Taylor after $29,430 in cash and computer equipment with a fair market value of $40,230 wore received lune 1: Byte of Accounting, Inc. issued 1,920 shares of its common stock after acquiring from Courtney $36.450 in cash, computer equipment with a fair market value of S14.040 and office equipment with a fair value of S1.350 03 lune 2: A down payment of 530,000 in cash was made on additional computer equipment that was purchssed for $150,000. A five-year note was exccuted by Byte for the balance. 04 June 4: Additional office equipment costing 3600 was purchasod on credit Computer Corporatio. 05. June 8: Unsatisfactory office equipment costing $120 was restumed to Discount Computer for 06. it to be applied against the outstanding balance owed by Byte lune 10: Byte paid S23,000 on the balance it owed on the Junc 2 purchase of computer equipment 07 June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for S5,640 in cash. The eflective date of the policy was June 16 08, lune 16: Byte purchased a building and the land it is on foe $95,000, to house its repair facilities and to store compater equipment. The lot on which the building is located is valued at S15,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $9.500 and exccuted a mortgage for the balanoe. The mortgage is payable in eight equal annual installments beginning July I June 17: Cash of $7,200 was paid foe rent lor June, July and August. Put the total amount into the Prepaid Rent account lune 17: Received a bill of $475 from the local newspaper for advertising 12. une 21: Accounts payable in the amount of $480 were paid. 14. June 21: A fax machine for the office was purchased for $750 cash. i: Billed various miscellaneous local customers $4,400 for consulting services performed. 13 June 2 Peyton Taylor 7864 Transaction Description of transaction 16une 22: Paid salaries of $835 to equipment ogerators for the week lune 22: Received a bill for $1,265 from Computer Parts and Repair Co. for repairs to the 17 computer equipment June 22: Paid the advertising bill that was received on June 1 June 23: Purchased office supplies for $705 on credit Record the purchase as an increase to the 19 20 June 23: Cash in the amount of S53,525 was received on billings 21 June 28: Billed $6,015 to miscellaneous customers for services performed to June 25 22June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co 23 June 29: Cash in the amount of S5,699 was received for billings 24Je 29: Paid salaries of $835 to equipment operators for the week ending June 25 25 June 30: Received a bill for the amount of $815 from O & G Oil and Gas Co. June 30: Paid a cash dividend of So.22 per share to thethree sharcholders of Byle. [IMPORTANT NOTE: The number of shares of capital stock outstanding can be determined trom the first three 26 Adjusting Entries- Round to two decimal places The rent payment made on June 17 was for June, July and August. Expense the 27 with one month's rent worth of office supplies remained on hand as of A physical inventory showed that only $292.00 June 30 28. The annual interest rate on the mortgage payable was 8.75 percent Interest expense for one month should be computed because the building and land were purchased and the liability incurred on June 16 29 5500 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 insuran 30 A review of Byte's job worksheets show that there are unbilled revenues in the amount of $5,000 for the period of June 28-30 3 1 The fixed assets have estimated useful lives as follows Building-31.5 years Computer Equipment-5.0 years Office Equipment - 7.0 years 32. Byte of Accounting, Ine. Peyton Taylor 7864 lransaction Description of transaction Uise the straight-line method of depreciation. Management has decided that assets purchased during a month are treated as if purchased on the first day of the month. The huilding's scrap value is 57,000. The office equipment has a scrap value of S500 The computer oquipment has no scrap value. Calculate the depreciation for one month Л review of the payroll records show that unpaid salaries in the amount of S501 (O are owed by Byte for three days, June 28-30o 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. Interest expense should be computed based on a 360 day year I IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was S120,000. On June 10, eight days later, $23.000 was repaid. Interest expense must be calculated on the $120,000 for cight days. In addition, interest expense on the $97,000 balance of the loan ($120,000 less $23.000 $97.000) must be calculated for the 20 days remaining in the month of June. 34 to be computed at the rate of 25 percent of net income before taxes Income taxes are [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.] 35 Closing Entries 36. Close the revenue accounts Close the expense accounts 37 38. 39 Close the dividends account 1 1 me what you want to d Insert Draw Page Layout Home % Cut Copy Format Painter BU Fon E31 A Byte of Accounting, Inc General Journal Note: You can only enter data into the yellow filled cells. 3 Description Name Lauryn's Investment Lauryn's Investment 01 01 Jun 01 3100 Capital Stock 02 Jun 01 1110 Cash 02 Jun 01 02 Jun 01 Peyton Taylor's Investment Peyton Taylor's investment Courtney's Investment Peyton Taylor's Investment 311 Computer Equip. 15 16 803 Jun 01 1110 Cash 36,450 4040.00 1,350 00 Computer Equip rtney's Investment Courtney's Investment Courtney's Investment 03 Jun 01 18 03 Jun 01 03 Jun 01 Cash Jun 02 1311 Computer Equip Down Payment on Computer Jun 02 2202 Notes Payable 21 04 23 24 120,0000 30,000 0 Down Payment on Computer Equipment Down Payment on Computer Equipment 04 Jun 02 600 00 Purchased from Discount Computer Jun 04..12į office Equi Jun 04 osi 600 Purchased from Discount Computer Corporation 2101 Accounts Payable 27 06 Jun 08 120 101 Accounts Payable Jun 081211 Office Equijp 2202 Notes Payable General Journal Worksheet Income Statement Changes in Retained Eamings Balance Sheet How tod 6 5 4 QWE Name Description 07 Jun 10 37 07 Jun 101110 Cash 40 08 Jun 14 08 Jun 14 1110 Cash 5 640.00 Need a Description 5,640.00 45 09 Jun 16 09-Jun 16--4 100 Computer & Consulting Need a Desen 1110 Cash 6 50000 4500in 18100 CConsuling edDerptin 6,500.00 49 10 Jun 16 1510 Land 10 Jun 16 1411 Building Cost 15,000 00 80,000.00 310 Jun 16 1110 Cash 85,500 171140 Prepaid Rent 1110 Cash 57 Need a Description 5030 Advertising Expense 61 12 Jun 17 66 13 Jun 211110 Cash 67 480.00 13 Jun 21 2101 Accounts Payable Need a Des Note: You can only enter data into the yellow 3 Name Description 106 21 Jun 28 1120 Accounts Receivable 107 6,015,00 Jun 28 4100 Computer& Consulting Need a Description 21 6 015 0 11 22 Jun 29 2101 Accounts Payable 112 1265 00 22 Jun 29 1110 Cash Need a Description 115 116 23 Jun 29 1110 Cash 118 5,69900 5,699.00 23 Jun 29 121 24 Jun 29 24 Jun 29 1110 Cash 5020 Salary Expense 835 835 123 124 125 126 5050 Oil & Gas Expense 2101 Accounts Payable 815.00 25 Jun 30 25 Jun 30 815.00 Need a Description 128 129 130 1.065 00 26 Jun 30 3300 Dividends 3226 Jun 30 1110 Cash 133 1,065.00 cription 135 136 137 5010 Rent Expense 400 Jun 30 27 Jun 30 General Journal Worksheet Income Statement Changes in Retained Earni A Byte of Accounting, Inc. General Journal 141 28 Jun 3 30 413 11.72 Interest or haif a 311 30 Jun 30 30 Jun 30 5100 Insurance Expense 31 Jun 30 1 Jun 30 502.83 32 Jun 32 Jun 30 32 Jun 30 1312 Accum. Depr-Compute One Month's D 5110 73 3,404.5 78 32 Jun 30 33 Jun 30 34 Jun 30 Description 5120|Income Tax Expense l Income Taxes at a Rate of 25% 2106. Income Taxes Payable[Income Taxes at a Rate of25% 929.95 35 929.95 Jun 30 81 36 Jun 30 4100 Computer & Consulting Closing Entries for Revenue Accounts 21.91500 3400 Income Summa Closing Entries for Revenue Accounts 21,915 00 36 Jun 30 185 37 Jun 30 2,400 00 187 37 Jun 30 4100 Computer & Consulting Closing Entries for Expense Accounts Closing Entries for Expense Accounts Closing Entries for Expense Accounts 37 Jun 30 5020 Salary E 189 37 Jun 30 190 37 Jun 30 5040 Repairs & Maint Exper Closing Entries for Expense Accounts 91 37 Jun 30 5050 Oil & Gas Expense Closing Entries for Expense Accounts 192 37 Jun 30 5080 Supplies Expense Closing Entries for Expense Accounts 193 37 Jun 30 5090 Interest Expense Closing Entries for Expense Accounts 194 37 Jun 30 5100 nsurance Expense Closing Entries for Expense Accounts 195 37 Jun 30 196 37 Jun 30 5120 Income Tax Expense Closing Entries for Expense Accounts 475.00 1,265 00 815.00 413 00 1278.39 Expense 5,875 00 un 301 5110 Depreciation Expense Closing Entries for Expense Accounts 929 95 38 Jun 30 Closing Entries for Income Summary 199 38 Jun 30 3200 Retained Earnings Closing Entries for Income 2,789.83 203 39 Jun 30 3200 Retained Earnings Closing Entry for Divideds Closing Entry for Dividends 39 Jun 30 3300 1,065.00 s Balance Sheet How to Crea

Answer 1

1	Being 2,600 shares sold for $ 70,200.
2	Being 2,580 shares sold against cash and computer equipment to Peyton Taylor.
3	Being 1,920 shares sold against cash, computer and office equipment to Courtney.
4	Being computer equipment purchased partly in cash and partly against Note payable.
5	Being office equipment purchased on credit.
6	Being office equipment returned found unsatisfactory.
7	Being amount payable on computer equipment purchased on June 2 paid.
8	Being one year insurance policy purchased for computer equipment.
9	Being revenue received against consulting services.
10	Being building and land purchased partly in cash and partly against mortgage.
11	Being rent paid for the month of June, July and August.
12	Being advertising expenses accrued.
13	Being accounts payable paid.
14	Being fax machine purchased in cash.
15	Being customer were billed for consulting services provided.
16	Being one week salaries paid to equipment operators.
17	Being repairs expenses of computer equipment accrued.
18	Being advertising bill paid in full.
19	Being office supplies purchased on credit.
20	Being accounts receivable received.
21	Being customer were billed for consulting services provided.
22	Being repairs expenses of computer equipment paid to Computer Parts and Repairs Inc.
23	Being accounts receivable received.
24	Being one week salaries paid to equipment operators.
25	Being fuel expenses bill received from O&G Oil and Gas Co.
26	Being cash dividend paid at $ .22 per share.
27	Being rent expenses for the month of June recorded.
28	Being office supplies expense recorded for the month of June.
29	Being interest payable on mortgage for the month of June recorded.
30	Being insurance expense for the month of June recorded.
31	Being unbilled revenues for the month of June recorded.
32	Being depreciation for the month of June on Building, Computer and office equipment recorded.
33	Being accrued salaries for the month of June recorded.
34	Being interest payable on Note Payable for the month of June recorded.
35	Being income tax liability for the month of June recorded.