Question

Normal Balance Debit Number Name 1110 Cash 1120 Accounts Receivable 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building Cost 1412 Accum. Depr. -Building Debit Debit Debit Debit Debit Credit Debit Credit Debit Credit Debit Credit Credit 1510 Land 2101 Accounts Payable 2102 Advanced Payments 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable 2201 Mortgage Payable 2202 Notes Payable 3100 Capital Stock 3200 Retained Earnings Credit Credit Credit Credit Credit Credit Credit Debit Credit 3300 Dividends 3400 Income Summary 4100 Computer & Consulting Revenue Credit 5010 Rent Expense 5020 Salary Expense 5030 Advertising Expense 5040 Repairs & Maint. Expense 5050 Oil & Gas Expense 5080 Supplies Expense 5090 Interest Expense 5100 Insurance Expense 5110 Depreciation Expense 5120 Income Tax Expense Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Description of transaction Transaction June 21: Billed various miscellancous local customers $4,800 for consulting services performed. 15. ending June 18. June 22: Paid salaries of $1,010 to equipment operators for the week 16. June 22: Received a bill for $1,290 from Computer Parts and Repair Co. for repairs to the computer equipment. 17. June 22: Paid the advertising bill that was received on June 17. 18. June 23: Purchased office supplies for $680 on credit. Record the purchase as an increase to the assets. 19. June 23: Cash in the amount of $3,845 was received on billings. 20. June 28: Billed $5,280 to miscellaneous customers for services performed to June 25. 21. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 22. June 29: Cash in the amount of $5,001 was received for billings. 23. equipment operators for the week ending June 25. June 29: Paid salaries of $1,010 to 24. June 30: Received a bill for the amount of $840 from O & G Oil and Gas Co. 25. June 30: Paid a cash dividend of $0.15 per share to the three shareholders of Byte. IMPORTANT NOTE: The number of shares of capital stock outstanding can be determined from the first three transactions.] C 26. Adjusting Entries - Round to two decimal places. The rent payment made on June 17 was for June and July. Expense the amount associated with one month's rent. 27. A physical inventory showed that only $281.00 worth of office supplies remained on hand as of June 30. 28. The annual interest rate on the mortgage payable was 8.50 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 29. obtained from the transaction recorded on Information relating to the prepaid insurance may June 14, Expense the amount associated with one half month's insurance. 30.

Answer 1

D C A JOURNAL ENTRIES Account Titles Debit ($) Credit (S) Date 2 Cash 1-Jun S56,000.00 3 $ 56,000.00 Common Stock 4 (To record the common stock issued) 5 1-Jun Computer Equipment Cash $ 41,440.00 $ 29,120.00 6 7 $ 70,560.00 Common Stock 8 (To record the common stock issued) Cash Computer Equipment Office Equipment 1-Jun 60.200.00 10 $ 16.800.00 11 $ 1232.00 12 $78,232.00 13 Common Stock To record the Common stock issued) 14 Computer Equipment Cash $180,000.00 2-Jun 15 36,000.00 16 Notes Payable $144,000.00 17 (To record purchase of Computer Equipment) Office Equipment 18 4-Jun 600.00 19 Accounts Payable 600.00 20 (To record Office Equipment purchased on credit) 21 8-Jun Accoounts Payable 120,00 22 Office Equipment $ 120.00 23 Office Equipmet) 24 (To record the retu 10-Jun Notes Payable $ 27,500.00 25 Cash 26 27,500.00 (To record Notes payable paid) 27 14-Jun Prepaid Insurance 5,304.00 28 Cash 5,304.00 29 (To record the purchase of 1 yr insurance policy) 30 16-Jun Cash 7,500.00 31 Services Revenue $ 7,500.00 32 (To record the Revenue earned) 33 16-Jun Land Building $ 21,000.00 34 $110,000.00 35 36 Cash $13,100.00 Mortgage Payable (To record the purchase of Land and Building) $117,900.00 37 38 17-Jun Prepaid Rent 4,800.00 39 Cash $ 4,800.00 40 (To record the Rent paid in advance) 41 Advertising Expense $ 42 17-Jun 250.00 Accounts Payable (To record the Advertising Expense) 250.00 43 44 Accounts Payable 21-Jun 480.00 45 Cash $ 480,00 46 (To record the suppliers were paid) 47 21-Jun Office Equipment 700.00 48 $ Cash 700.00 49 (To record the purchase of fax machine) 50 21-Jun Accounts Receivable 4.800,00 51 Services Revenue 52 4,800.00 (To record the services performed on account) 53 54

G I JOURNAL ENTRIES 1 Account Titles Debit ($) Credit (S) 2 Date Salaries Expense S 1.010.00 22-Jun 3 $ 1,010.00 Cash 4 (To record the Salaries paid) 22-Jun Repairs Expense $ 1,290.00 6 $ 1,290.00 Accounts Payable 7 (To record the repairs of computer billed) 22-Jul Accounts Payable S 250,00 Cash S 250.00 10 (To record the Advertising paid) 11 23-Jun Office Supplies 680,00 S 12 Accounts Payable (To record the purchase of Office Supplies) S 680.00 13 14 23-Jun Cash 3.845.00 15 Accounts Receivable $ 3,845.00 16 (To record the Cash received from customers) 17 28-Jun Accounts Receivable $ 5,280.00 18 Services Revenue 5.280.00 19 (To record the Services performed on account) 20 Accounts Payable 1.290.00 29-Jun 21 S 1,290.00 Cash 22 (To record the Repairs paid) 23 29-Jun Cash S 5,001.00 24 Accounts Receivable 25 5,001.00 (To record the Cash received from customers) 26 29-Jun Salaries Expense 1,010.00 27 $ 1,010.00 Cash 28 29 (To record the Salaries paid) 30-Jun Oil and Gas Expense S 840.00 30 Accounts Payable (To record the Oil & Gas bill received) S 840.00 31. 32 30-Jun Dividends ((2000+2520+2794)*0.15 S 1.097.00 33 $ 1,097.00 Cash 34 (To record the Dividends Paid) 35 36 R7 ADJUSTING JOURNAL ENTRIES Date Account Titles Debit ($) Credit (S) 38 30-Jun Rent Expense 2,400.00 - 3400 2 39 Prepaid Rent (To record the Rent Expense) Office Supplies Expense Office Supplies (To record the Office Supplies used) 2,400.00 40 41 - 680-281 30-Jun S 399 00 42 S 399.00 43 ДА 30-Jun Interest Expesne (117900*8.5 %)*0.5/12 418.00 45 Interest Payable 418.00 46 (To record the Interest on Mortagage) 47 30-Jun Insurance Expense - ( 5304 0.5 ) / 12 S 221.00 48 Prepaid Insurance (To record the Insurance Expense) Accounts Receivable S 221.00 49 50 30-Jun 5,250.00 51 $ 5.250,00 Services Revenue 52 (To record the Service provided on account) 53 54

P N R M C ADJUSTING JOURNAL ENTRIES 1 Debit ($) Credit (S) Date Account Titles 2 30-Jun Depreciation Expense $4,264.00 $269.00SLN(110000,8500,31.5)*1/12 $3,971.00SLN(238240,0,5)*1/12 $24.00 SLN(2412,400,7)*1/12 4 Accumulated Depreciation Building Accumulated Depreciation Computer Equipment 5 Accumulated Depreciation Office Equipment 6 (To recod the Depreciation Expense) 7 30-Jun Salaries Expense 606.00 8 Salaries Payable 606.00 (To record the Salaries Accrued) 30-Jun Interest Expense 10 S 1,161.00 11 Interest Payable $1,161.00 12 - ( ( 144000*12 % )*8/360)+((1 16500*12% ) * 20/360) (To record the interest expense on NotesPayable) 13 30-Jun Income Tax Expense S 2,392.00 14 Income Tax Payable (To record the interest expense on NotesPayable) $2.392.00 15 16 17 building Computer Equipment Office Equipment 110000 18 238240 Net Income $9.567.00 19 2412 Income Tax@25% $2,392.00 20 21

T V W X AA Adjusting Entries Credit (S) 1 Unadjusted Trial Balance Debit (S) S 68,285.00 Adjusted Trial Balance Credit (S) Account No.Account Title Credit (S) Debit (S) Debit (S) 2 $ 68,285.00 3 1110 Cash S 5,250.00 1120 Accounts Receivable S 1.234.00 S 6,484.00 Prepaid Insurance Prepaid Rent Office Supplies 221.00 S S 2,400.00 5 1130 S 5,304.00 S 5,083.00 1140 S 4,800.00 S 2,400.00 7 1150 S 680.00 S 399.00 S 281.00 S 2,412.00 S 2,412.00 Office Equipment 1211 Accum. Dep. - Office Equipment 1212 S 24,00 S 24.00 Computer Equipment Accum. Dep. - Comp. Equipment Building Cost S 238,240.00 S 238,240.00 10 1311 $ 3,971.00 S 3,971.00 11 1312 S 110,000.00 S 110,000.00 12 1411 Accum. Dep - Building 13 1412 S 269.00 S 269.00 S 21,000.00 S 21,000.00 14 1510 Land Accounts Payable 15 2101 S 680.00 S 680.00 Advanced Payments 16 2102 Interest Payable S 1,579.00 17 2103 S 1,579.00 Salaries Payable Income Tax Payable Mortgage Payable Notes Payable 18 2105 S $ 2,392.00 $ 117,900.00 $ 116,500.00 S 204,792.00 S 2,392.00 19 2106 S 117.900.00 20 2201 $ 116,500.00 S 204,792.00 21 2202 22 3100 Common Stock Retained Earnings 23 3200 Dividends 24 3300 S 1,097.00 S 1,097.00 25 Computer & Consulting Revenue Rent Expense Salary Expense Advertising Expense Repairs Expense Oil and Gas Expense Office Supplies Expense Interest Expense Insurance Expense Depreciation Expense Income Tax Expense S 17,580.00 S 5,250.00 S 22,830.00 26 4100 $ 2,400.00 S 2,400.00 27 5010 28 5020 2,020.00 2,020.00 29 5030 S 250,00 S 250.00 30 5040 S 1290.00 S 1,290.00 840,00 31 5050 840.00 32 5080 S 399.00 S 399.00 S 1,579.00 33 5090 S 1,579.00 221.00 221.00 34 5100 S S S 4.264.00 35 5110 S 4,264.00 S 2,392.00 2,392.00 36 5120 S 37 Total S 457,452.00 S 457,452.00 S 16,505.00 S 16,505.00 470,937.00 470,937.00 38 30 N st LC LO. CO O