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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 $236.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 8.25 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 $9,000 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 $7,500. The office equipment has a scrap value of $400. 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 $591 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 $140,000. On June 10, eight days later, $26,750 was repaid. Interest expense must be calculated on the $140,000 for eight days. In addition, interest expense on the $113,250 balance of the loan ($140,000 less $26,750 = $113,250) 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 Entries 36. Close the revenue accounts. 37. Close the expense accounts. 38. Close the income summary account. 39. Close the dividends account. Credit Transaction Date Account Name Description Paid Accounts Payable Debit 11100 Cash 480.00 3 25.00 16 16 Jun 22 Jun 22 2101 Accounts Payable 1110 Cash Paid Advertising Bill Paid Advertising Bill 325.00 - 1,290.00 17 171 Jun 22 Jun 22 5040 Repairs & Maint. Expen Bill for computer parts and repair 2101 Accounts Payable Bill for computer parts and repair 1,290.00 18 18 Jun 22 Jun 22 5020 Salary Expense 1110 Cash Paid Salaries week ending jun 18 Paid Salaries week ending jun 18 985.00 T 985.00, 3,365.00 19 19 Jun 23 Jun 23 1110 Cash 1120 Accounts Receivable Cash received on billings Cash received on billings 3,365.00 --- 20 20] Jun 23 Jun 23 1150 Office Supplies 2101 Accounts Payable Purchased office supplies on credit Purchased office supplies on credit I 580.00 I 580.00 5 ,280.00 21 21] Jun 28 Jun 28 1120 Accounts Receivable Billed customers for services on jun 25 4100 Computer & Consulting Billed customers for services on jun 25 5,280.00 5,001.00 22 22 Jun 29 Jun 29 1110 Cash 1120 Accounts Receivable Cash received on billings Cash received on billings 5,001.00 23 23 Jun 29 Jun 29 2101 Accounts Payable 1110 Cash Paid bill received on Jun 22 Paid bill received on Jun 22 1,290.00 | 1,290.00 985.00 ---- 24 24 Jun 29 Jun 29 5020 Salary Expense 1110 Cash Paid salaries week ending jun 25 Paid salaries week ending jun 25 985.00 965.00 25] 25] Jun 30 Jun 30 5040 Repairs & Maint. Expen Received bill for Oil and Gas CO 2101 Accounts Payable Received bill for Oil and Gas CO nd Gas CO L I 1 965.00 1,100.40|| 26 26 Jun 30 | Jun 30 3300 Dividends 1110 Cash Paid Cash Dividend Paid Cash Dividend 1,100.40 27 Jun 17 5010 Rent Expense Adjusting Entry for Rent 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 $236.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 8.25 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 $9,000 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 $7,500. The office equipment has a scrap value of $400. 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 $591 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 $140,000. On June 10, eight days later, $26,750 was repaid. Interest expense must be calculated on the $140,000 for eight days. In addition, interest expense on the $113,250 balance of the loan ($140,000 less $26,750 = $113,250) 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 Entries 36. Close the revenue accounts. 37. Close the expense accounts. 38. Close the income summary account. 39. Close the dividends account. Credit Transaction Date Account Name Description Paid Accounts Payable Debit 11100 Cash 480.00 3 25.00 16 16 Jun 22 Jun 22 2101 Accounts Payable 1110 Cash Paid Advertising Bill Paid Advertising Bill 325.00 - 1,290.00 17 171 Jun 22 Jun 22 5040 Repairs & Maint. Expen Bill for computer parts and repair 2101 Accounts Payable Bill for computer parts and repair 1,290.00 18 18 Jun 22 Jun 22 5020 Salary Expense 1110 Cash Paid Salaries week ending jun 18 Paid Salaries week ending jun 18 985.00 T 985.00, 3,365.00 19 19 Jun 23 Jun 23 1110 Cash 1120 Accounts Receivable Cash received on billings Cash received on billings 3,365.00 --- 20 20] Jun 23 Jun 23 1150 Office Supplies 2101 Accounts Payable Purchased office supplies on credit Purchased office supplies on credit I 580.00 I 580.00 5 ,280.00 21 21] Jun 28 Jun 28 1120 Accounts Receivable Billed customers for services on jun 25 4100 Computer & Consulting Billed customers for services on jun 25 5,280.00 5,001.00 22 22 Jun 29 Jun 29 1110 Cash 1120 Accounts Receivable Cash received on billings Cash received on billings 5,001.00 23 23 Jun 29 Jun 29 2101 Accounts Payable 1110 Cash Paid bill received on Jun 22 Paid bill received on Jun 22 1,290.00 | 1,290.00 985.00 ---- 24 24 Jun 29 Jun 29 5020 Salary Expense 1110 Cash Paid salaries week ending jun 25 Paid salaries week ending jun 25 985.00 965.00 25] 25] Jun 30 Jun 30 5040 Repairs & Maint. Expen Received bill for Oil and Gas CO 2101 Accounts Payable Received bill for Oil and Gas CO nd Gas CO L I 1 965.00 1,100.40|| 26 26 Jun 30 | Jun 30 3300 Dividends 1110 Cash Paid Cash Dividend Paid Cash Dividend 1,100.40 27 Jun 17 5010 Rent Expense Adjusting Entry for Rent

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