Byte of Accounting, Inc. Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. acquired $70,200 in cash from Lauryn and issued 2,600 shares of its common stock 02 June 1: Byte of Accounting, Inc. issued 2,540 shares of its common stock to in cash and computer equipment with a fair market value of $40,770 were received. $27,810 03 June 1: Byte of Accounting, Inc. issued 1.976 shares of its common stock after acquiring from Courtney $36,450 in cash, computer equipment with a fair market value of $16,200 and office equipment with a fair value of $702 04 June 2: A down payment of S34,000 in cash was made on additional computer equipment that was purchased for $170,000. A five-year note was executed by Byte for the balance 05. Orientation June 4: Additional office equipment costing $700 was purchased on or kunt Computer Corporation 06. June 8: Unsatisfactory office equipment costing $140 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte 07. June 10: Byte paid $26,000 on the balance it owed on the June 2 purchase of computer equipment 8 08. June 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $5,976 in cash. The effective date of the policy was June 16. D 1 09. June 16: A check in the amount of $6,500 was received for consulting revenue 2 10 June 16: Byte purchased a building and the land it is on for $131,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $21,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $13,100 and executed a mortgage for the balance. The mortgage payable in eight equal annual installments beginning July 1 24 24 11. June 17: Cash of $4,800 was paid for rent for June, July and August. Put the total amount into the Prepaid Rent account. 12, June 17: Received a bill of $275 from the local newspaper for advertising, 25 26 27 28 29 30 13. June 21: Accounts payable in the amount of $560 were paid. 14 June 21: A flux machine for the office was purchased for $850 cash. 31 32 15. June 21: Billed various miscellaneous local customers $4,200 for consulting services performed 33 34 35 36 16. June 22: Paid salaries of 5985 to equipment operators for the week ending June 18. 17. June 22: Received a bill for $1,315 from Computer Parts and Repair Co. for repairs to the computer equipment 18. 37 38 39 40 41 42 43 June 22: Paid the advertising bill that was received on June 17. Orientation June 23: Purchased office supplies for $505 on credit. Record the purchase as an increase to the assets. 19. 20, June 23: Cash in the amount of S3,365 was received on billings 21. June 28: Billed $5.805 to miscellaneous customers for services performed to June 25. 22 45 46 47 48 49 50 June 29: Paid the bill received on June 22. from Computer Parts and Repairs Co. 23. June 29: Cash in the amount of $5,500 was received for billings 24. June 29: Paid salaries of S985 to equipment operators for the week ending June 25, 51 52 53 54 25, June 30: Received a bill for the amount of $815 from O&G Oil and Gas Co. 26. June 30: Paid a cash dividend of 50.20 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.] 55 56 Transactions General Joumal Worksheet Income Statement Changes in Retained E Ready Draw Formulas Data Page Layout Home Insert Review View Tell me Paste Arial 10 333 2 Wrap Text BUL CA Merge & Center Alignment Xfx [IMPORTANT NOTE: Since the income taxes are a percent of the net income you will want Font Clipboard B82 c 35 three days, June 28 - 30. 75 76 34 77 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 $136,000 On June 10, eight days later, 526,000 was repaid. Interest expense must be calculated on the $136,000 for eight days. In addition, interest expense on the $110,000 balance of the loan (5136,000 less $26,000 - $110,000) must be calculated for the 20 days remaining in the month of June.) 78 80 31 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) 82 84 Closing Entries . 35 36 36. Close the revenue accounts. Orientation 88 37. Close the expense accounts 89 90 38. Close the income summary account. 39. Close the dividends account. 91 92 93 94 95 95 07 98 90 100 101 102 103 104 105 100 107 Transactions General Journal Worksheet Income Statement Ready Changes in Reta Home Insert Draw Formulas Data Review View Page Layout Tell me X Arial Accounting Wrap Text 10 ' 0-A w Paste B EEE Merge & Center $% Font Alignment Nur Clipboard E11 F G H 1 A 1 B c D E A Byte of Accounting, Inc. General Journal Note: You can only over det into the yellow filed cells 2 3 Transaction Account Dato Name Description Debit Credit 70,200.00 01 01 Jun 01 Jun 01 1110 Cash 3100 Capital Stock Common Stock issued Common Stock issued 70,200.00 02 02 02 Jun 01 Jun 01 Jun 01 1110 Cash 1311 Computer Equip 1211 Office Equip 27,810.00 40,230.00 Need a Description Need a Description 68,040.00 03 03 03 03 Jun 01 Jun 01 Jun 01 Jun 01 1110 Cash 1311 Computer Equip 1211 Office Equip 3100 Capital Stock Need a Description Need a Description Need a Description 36.450.00 16,200.00 70200 53.352.00 170,000.00 04 04 04 Jun 02 Jun 02 Jun 02 1311 Computer Equip 1110 Cash 2102 Advanced Payments Need a Description Need a Destation 34,000.00 136,000.00 5 6 7 3. 9 10 11 12 13 14 15 16 17 15 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 700.00 05 05 Jun 04 Jun 04 1211 Office Equip 2101 Accounts Payable Need a Description 700.00 140.00 05 06 Jun 08 Jun 08 2101 Accounts Payable 1211 Office Equip Need a Description 140.00 199 Jun 10 Jun 10 2202 Notes Payable 1110 Cash 25,000.00 Need a Description 26,000.00 5,976,00 08 08 Jun 14 Jun 14 1130 Prepaid Insurance 1110 Cash Nenda Decoration 5,975.00 Jone Onth Transactions General Journal Worksheet 9,000.00 Income Statement A Changes in Retained Earnir Ready Home insert Draw Page Layout Formulas Data Review View Tell me X [5 Arial 10 A A 29 Wrap Text Accounting == SS Paste BIU v a. Av Merge & Center $ % ) Clipboard Font Alignment Nume E27 fx 12130 B E F G H J 1 2 D A Byte of Accounting, Inc. Income Statement For Month Ending June 30, 2021 3 4 5 6 7 8 9 10 Revenues Computer & Consulting Revenue $ 16,505.00 Expenses Rent Expense Salary Expense Advertising Expense Repairs & Maint. Expense Ol & Gas Expense Supples Expense Interest Expense Insurance Expense Depreciation Expense Total Expenses $ 1,970.00 $ 275.00 $ 1,315.00 $ 815 00 4,375.00 Net Income Before Tax $ 12.130.00 Income Tax Expense Pound te we will Net Income After Tax $ 12.130.00 12 13 14 15 16 17 18 19 20 21 22 23 24 25 25 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 X Arial 10 L. - A A ID Wrau Text Accounting Paste de Merget Center $ Clipboard Font F53 1 x fx 365002 Alignment Nu 3 E G 1 A Byte of Accounting, Inc. Balance Sheet As of June 30, 2021 4 5 Assets 8 9 10 11 12 13 14 15 16 17 TE Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total $ 61,079.00 $ 1,140.00 $ 5,975.00 4,800.00 5 505.00 $ 73,500.00 $ 65,928.00 65,928.00 20 23 $ 226,430.00 Long-Term Assets Office Equip Accum. Depr Office Equip Computer Equip Accum. Dopr-Computer Equip Building Cost Accum. Depr Building Land Total Total Assets $ 226,430.00 5 110.000.00 23 24 26 27 $ 110,000.00 21.000.00 $ 291 502.00 $365.002.00 Liabilities 20 30 31 32 33 34 35 36 37 38 $ 505.00 Current Liabilises Accounts Payable Advanced Payment Interest Payable Salais Payable Income Taxes Payable Total $ 136,000.00 $ 135,505.00 40 41 42 43 44 45 Long-Term Liabilities Mongage Payable Nches Payable Total Total Labs $ 118,815.00 7 000 do 92.815.00 $ 229 320 00 47 Transactions Goneral Journal Ready Worksheet Income Statement Changes in Retained Earnings Arla [o 10 > A Wrap Text A Merge & Center Accounting Paste T $% Font Clipboard G24 Anment NU x fx A 6 C D 1 2 E G A Byte of Accounting, Inc. Worksheet For Period Ending June 30, 2021 4 Adjusting Entries Deb Credit Unadjusted Trial Balance Dobit Credit 61,079.00 1.140.00 5976.00 4.800.00 505.00 65.928,00 Adjusted Tral Balance Dobit Credit 61 079.00 1.140.00 5.976.00 4.800.00 505.00 65.928 00 226,430.00 228.430.00 110.000.00 110,000.00 21 000 00 21 000.00 505.00 130 000.00 505.00 136,000.00 5 6 Account 7 Number Name 3 1110 Cash 0 1120 Accounts Receivable 10 1130 Prepaid Insurance 11 1140 Prepaid Rent 12 1150 Office Supplies 13 1211 Office Equip 1212 Accum. Depe Office Equip 15 1311 Computer Equip 10 1312 Accum Dept. Computer Equip 17 1410 Building Cost 18 1412 Accum Dept Building 19 1510 Land 20 2101 Accounts Payable 21 2102 Advanced Payments 22 2103 Interest Payable 23 2105 Salaries Payable 24 2100 Income Taxes Payable 25 2201 Mortgage Payable 26 2202 Notes Payable 27 3100 Capital Stock 28 3200 Ratained Eamings 29 3300 Dividends 30 31 4100 Computer & Consulting Revenue 32 5010 Rent Expense 23 5020 Salary Expert 34 5030 Advertising Expense 35 5040 Repair & Maint Expense 36 5050 L Gas Expense 37 5080 Supplies Expense 38 5090) Interest Expense 39 5100 Inance Experte 40 5110 Depreciation Experte 41 5170 Income Tax Fxpense 42 - 118,315.00 118 815.00 25,000.00 26,000.00 123,552.00 123 552.00 - 16,505.00 16.505.00 1.070.00 275.00 1315.00 815 00 1,970.00 275.00 1315.00 315.00 44 45 40 47 40 TOTAL 401 305.00 461305.00 401.305.00 451 305.00 Transactions General Journal Workirheet Income Statement e Changes in Retained Earnings Ready