need to fill it out this is the data: A Byte of Accounting, Inc. Statement of Ch
ID: 2523913 • Letter: N
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this is the data:
A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 22, 2018 Total Balance, Beginning of Period Net Income Dividends Balance, End of Periodneed to fill it out
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Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2,640 shares of its common stock to Jeremy after $31,030 in cash and computer equipment with a fair market value of $45,530 were received. 02. June 1: Byte of Accounting, Inc. issued 2,382 shares of its common stock after acquiring from Courtney $50,750 in cash, computer equipment with a fair market value of $17,400 and office equipment with a fair value of $928. 03. June 1: Byte of Accounting, Inc. acquired $87,000 in cash from angel and issued 3,000 shares of its common stock. 04. June 2: A down payment of $30,000 in cash was made on additional computer equipment that was purchased for $150,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $300 was purchased on credit from Discount Computer Corporation. 06. June 8: Unsatisfactory office equipment costing $60 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $23,000 on the balance it owed on the June 2 purchase of computer equipment. 08. June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $4,968 in cash. The effective date of the policy was June 16. 09. June 16: Computer consultation revenue of $6,500 was received. 10. June 16: Byte purchased a building and the land it is on for $119,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $19,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $11,900 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 11. June 17: Cash of $4,800 was paid for rent for June and July. Put the total amount into the Prepaid Rent account. 12. June 17: Received a bill of $325 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,400 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $800 cash. 15. June 21: Accounts payable in the amount of $240 were paid. 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,215 from Computer Parts and Repair Co. for repairs to the computer equipment. 18. June 22: Paid salaries of $1,035 to equipment operators for the week ending June 18. 19. June 23: Cash in the amount of $3,525 was received on billings. 20. June 23: Purchased office supplies for $505 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed $5,805 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,500 was received for billings. 23. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co. 24. June 29: Paid salaries of $1,035 to equipment operators for the week ending June 25. 25. June 30: Received a bill for the amount of $915 from O & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.20 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.] Adjusting Entries - Round to two decimal places. 27. The rent payment made on June 17 was for June and July. Expense the amount associated with one month's rent. 28. A physical inventory showed that only $202.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 9.25 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. 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 insurance. 31. A review of Byte’s job worksheets show that there are unbilled revenues in the amount of $5,750 for the period of June 28-30. 32. The fixed assets have estimated useful lives as follows: Building - 31.5 years Computer Equipment - 5.0 years 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 $8,500. The office equipment has a scrap value of $300. 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 $621 are owed by Byte for three days, June 28 - 30. 34. 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. [IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $120,000. On June 10, eight days later, $23,000 was repaid. Interest expense must be calculated on the $120,000 for eight 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.] 35. Income taxes are to be computed at the rate of 25 percent of net income before taxes. [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.] Closing EntriesExplanation / Answer
JOURNAL:
20
NOTE:ARITHMETIC ACCURANCY HAS BEEN MAINTAINED , AS IT IS A LONG QUESTION,KINDLY CHECK CALCULATIONS AND MAKE CHANGES WHEREVER NECESSARY
S.NO. DATE PARTICULARS DESCRIPTION DEBIT CREDIT 1 JUNE 1 CASH ISSUE OF COMMON STOCK $31.030 COMPUTER EQUIPMENT ISSUE OF COMMON STOCK $45,530 CAPITAL STOCK ISSUE OF COMMON STOCK(2640 SHARESX $29 ) $76,560 2 JUNE 1 CASH ISSUE OF COMMON STOCK $50,750 COMPUTER EQUIPMENT ISSUE OF COMMON STOCK $17,400 OFFICE EQUIPMENT ISSUE OF COMMON STOCK $928 CAPITAL STOCK ISSUE OF COMMON STOCK(2,382 SHARES X $29) $69,078 3 JUNE 1 CASH ISSUE OF COMMON STOCK $87,000 CAPITAL STOCK ISSUE OF COMMON STOCK(3,000 SHARES X $29) $87,000 4 JUNE 2 COMPUTER EQUIPMENT PURCHASE OF COMPUTER $150,000 CASH $30,000 NOTES PAYABLE $120,000 5 JUNE 4 OFFICE EQUIPMENT PURCHASE OFFICE EQUIPMENT $300 ACCOUNTS PAYABLE $300 6. JUNE 8 ACCOUNTS PAYABLE RETURN OFFICE EQUIPMENT $60 OFFICE EQUIPMENT $60 7. JUNE 10 NOTES PAYABLE PAYMENT OF COMPUTER EQUIPMENT $23,000 CASH $23,000 8 JUNE 14 PRE-PAID INSURANCE COMPUTER INSURANCE $4,968 CASH $4,968 9. JUNE 16 CASH COMPUTER CONSULTANCY REVENUE $6,500 COMPUTER & CONSULTING SERVICES $6,500 10 JUN 16 BUILDING COST PURCHASE OF LAND AND BUILDING $19,000 LAND $100,000 CASH $11,900 MORTGAGE PAYABLE $107,100 11. JUNE 17 PREPAID RENT PAYMENT OF RENT $4,800 CASH $4,800 12. JUNE 17 ADVERTISING EXPENSE ADVERTISING EXPENSE $325 ACCOUNTS PAYABLE $325 13. JUNE 21 ACCOUNTS RECEIVABLE CONSULTING REVENUE $4,400 COMPUTER & CONSULTING SERVICES $4,400 14. JUNE 21 OFFICE EQUIPMENT PURCASE OF FAX MACHINE $800 CASH $800 15. JUNE 21 ACCOUNTS PAYABLE PAYMENT OF ACCOUNTS PAYABLE $240 CASH $240 16. JUNE 22 ACCOUNTS PAYABLE PAYMENT OF ADVERTISING EXPENSES $325 CASH $325 17. JUNE 22 REPAIRS AND MAINTENANCE EXPENSES COMPUTER REPAIRING FEE $1,215 ACCOUNTS PAYABLE $1,215 18. JUNE 22 SALARY EXPENSE SALARY PAYMENT $1,035 CASH $1,035 19. JUNE 23 CASH RECIEVE PAYMENT $3,525 ACCOUNTS RECEIVABLE $3,52520
JUNE 23 OFFICE SUPPLIES PURCAHSE OF OFFICE SUPPLIES $505 ACCOUNTS PAYABLE $505 21 JUNE 28 ACCOUNTS RECEIVABLE RECORD OF REVENUE $5,805 COMPUTER AND CONSULTING SERVICES $5,805 22 JUNE 29 CASH RECEIVED PAYMENT $5,500 ACCOUNTS RECEIVABLE $5,500 23 JUNE 29 ACCOUNTS PAYABLE PAYMENT OF COMPUTER REPAIR $1,215 CASH $1,215 24 JUNE 29 SALARY EXPENSE SALARY PAYMENT $1,035 CASH $1,035 25 JUNE 30 OIL & GAS EXPENSE OIL AND GAS EXPENSE $915 ACCOUNTS PAYABLE $915 26 JUNE 30 DIVIDENDS DIVEIDEND PAID(8022 SHARES * $0.20 PER SHARE) $1604.40 CASH $1604.40 27. JUNE 30 RENT EXPENSE RENT EXPENSE RECOGNISED $2,400 PREPAID RENT $2,400 28. JUNE 30 SUPPLIES EXPENSE SUPPLIES EXPENSE $202 OFFICE SUPPLIES $202 29. JUNE 30 INTEREST EXPENSE INTEREST ADJUSTMENT($107100*9.25%*1/12*1/2) $412.78 INTEREST PAYABLE $412.78 30. JUNE 30 INSURANCE EXPENSE INSURANCE ADJUSTMENT($4,968*1/12*1/2) $207 PREPAID INSURANCE $207 31 JUNE 30 ACCOUNTS RECEIVABLE UNBILLED REVENUE $5,750 COMPUTER & CONSULTING SERVICES $5,750 32. JUNE 30 DEPRICIATION EXPENSE ADJUST DEPRICIATION $3,596.47 ACCUMULATED DEPRICIATION-COMPUTER $3548.83 ACCUMULTATED DEPRICIATION OFFICE EQUIPMENT $19.86 ACCUMULATED DEPRICIATION-BUILDING $27.78 33. JUNE 30 SALARY EXPENSE SALARY EXPENSE $621 SALARY PAYABLE $621 34. JUNE 30 INTEREST EXPENSE INTEREST ADJUSTMENT $966.67 INTEREST PAYABLE (120000*12%*8/360+97000*12%*20/360) $966.67 35. JUNE 30 INCOME TAX EXOENSE INCOME TAX $2,381.02 INCOME TAX PAYABLE $2,381.02 CLOSING ENTRIES 36. JUNE 30 COMPUTER AND CONSULTING SERVICES CLSOING REVENUE $22,455 INCOME SUMMARY $22,455 37. JUNE 30 INCOME SUMMARY CLOSING EXPENSE $15,311.94 RENT EXPENSE $2,400 SALARY EXPNESE $2,691 ADVERTISEMENT EXPENSES $325 REPAIR & MAINTENANCE $1,215 OIL AND GAS EXPENSES $915 SUPPLIES EXPENSES $202 INTEREST EXPENSE $1,379.45 INSURANCE EXPENSES $207 DEPRICIATION EXPENSE $3,596.47 INCOME TAXES $2,381.02 38. JUNE 30 INCOME SUMMARY CLOSING RETAINED EARNINGS $7,143.06 RETAINED EARNINGS $7,143.06 39. JUNE 30 RETAINED EARNINGS CLOSING DIVIDENDS $1,604.40 DIVIDEND $1,604.40Related Questions
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