Adjusting Entries - Round to two decimal places. 27. The rent payment made on Ju

Question

Adjusting Entries - Round to two decimal places. 27. The rent payment made on June 17 (3600 )was for June and July. Expense the amount associated with one month's rent. 28. A physical inventory showed that only $259.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 9.00 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 30. Record a journal entry to reflect that one half month's insurance has expired.   31. A review of Byte’s job worksheets show that there are unbilled revenues in the amount of $5,625.00 for the period of June 28-30. The fixed assets have estimated useful lives as follows: Building - 31.5 years Computer Equipment - 5.0 years 32. Office Equipment - 7.0 years Use 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 building’s scrap value is $500.00. The office equipment has a scrap value of $350.00. The computer equipment has no scrap value. Calculate the depreciation for one month. 33. A review of the payroll records show that unpaid salaries in the amount of $531.00 are owed by Byte for three days, June 28 - 30. Ignore payroll taxes. 34. The note payable to Royce Computers (transactions 04 and 07) 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. Closing Entries 35. Close the revenue accounts. 36. Close the expense accounts. 37. Close the income summary account. 38. Close the withdrawals account. Adjusting Entries - Round to two decimal places. 27. The rent payment made on June 17 (3600 )was for June and July. Expense the amount associated with one month's rent. 28. A physical inventory showed that only $259.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 9.00 percent. Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16. 30. Record a journal entry to reflect that one half month's insurance has expired.   31. A review of Byte’s job worksheets show that there are unbilled revenues in the amount of $5,625.00 for the period of June 28-30. The fixed assets have estimated useful lives as follows: Building - 31.5 years Computer Equipment - 5.0 years 32. Office Equipment - 7.0 years Use 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 building’s scrap value is $500.00. The office equipment has a scrap value of $350.00. The computer equipment has no scrap value. Calculate the depreciation for one month. 33. A review of the payroll records show that unpaid salaries in the amount of $531.00 are owed by Byte for three days, June 28 - 30. Ignore payroll taxes. 34. The note payable to Royce Computers (transactions 04 and 07) 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. Closing Entries 35. Close the revenue accounts. 36. Close the expense accounts. 37. Close the income summary account. 38. Close the withdrawals account.

Explanation / Answer

SOLUTION:

Income statement

Revenues

Computer & Consulting Revenue

$22,370.00

Exp.enses

Rent Exp.

$2,400.00

Salary Exp.

$2,236.00

Advertising Exp..

$350.00

Repair and Maint. Exp..

$1,190.00

Oil & Gas Exp.

$840.00

Supplies Exp.

$371.00

Interest Exp.

$1,489.00

Insurance Exp.

$235.00

Depreciation Exp.

$3,909.11

Total

$13,020.11

Net Income Before Tax

$13,020.11

Income Tax Exp..

$2,337.47

Net Income After Tax

10682.64

Retained Earnings

Amount

Opening Balance

$180,444.00

Plus: Net Income

$10,682.64

$191,126.64

Minus: Dividends

$1,886.46

Closing Balance

$189,240.18

?

Transaction Date Account Particulars Debit Credit 27 42551 5010 Rent Exp. $2,400.00 42551 1140 Prepaid Rent $2,400.00 28 42551 5080 Supplies Exp. $371.00 42551 1150 Office Supplies $371.00 29 42551 5090 Interest Exp. $393.00 42551 2103 Interest Payable $393.00 30 42551 5100 Insurance Exp. $235.00 42551 1130 Prepaid Insurance $235.00 31 42551 1120 Accounts Receivable $5,750.00 42551 4100 Computer & Consulting Revenue $5,750.00 32 42551 5110 Depreciation Exp. $3,909.11 42551 1212 Accum. Depr.-Office Equip. $18.62 42551 1312 Accum. Depr.-Computer Equip. $3,618.00 42551 1412 Accum. Depr.-Building $272.49 33 42551 5020 Salary Exp. $516.00 42551 2105 Salaries Payable $516.00 34 42551 5090 Interest Exp. $1,096.00 42551 2103 Interest Payable $1,096.00 35 42551 5120 Income Tax Exp. $2,337.47 42551 2106 Income Taxes Payable $2,337.47 36 42551 4100 Computer & Consulting Revenue $22,370.00 36 42551 3400 Income Summary $22,370.00 37 42551 3400 Income Summary $15,357.58 42551 5010 Rent Exp. $2,400.00 42551 5020 Salary Exp. $2,236.00 42551 5030 Advertising Exp. $350.00 42551 5040 Repairs & Maint. Exp. $1,190.00 42551 5050 Oil & Gas Exp. $840.00 42551 5080 Supplies Exp. $371.00 42551 5090 Interest Exp. $1,489.00 42551 5100 Insurance Exp. $235.00 42551 5110 Depreciation Exp. $3,909.11 42551 5120 Income Tax Exp. $2,337.47 38 42551 3400 Income Summary $7,012.42 42551 3200 Retained Earnings $7,012.42 39 42551 3200 Retained Earnings $1,886.46 42551 3300 Dividends $1,886.46

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