{"id":12450,"date":"2021-10-30T02:57:27","date_gmt":"2021-10-30T02:57:27","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/a-byte-of-accounting-inc-_journal-to-financial-statement\/"},"modified":"2021-10-30T02:57:27","modified_gmt":"2021-10-30T02:57:27","slug":"a-byte-of-accounting-inc-_journal-to-financial-statement","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/a-byte-of-accounting-inc-_journal-to-financial-statement\/","title":{"rendered":"A byte of accounting, inc._journal to financial statement"},"content":{"rendered":"
\n\nByte of Accounting, Inc.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nDescription of transaction<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 1:\u00a0\u00a0 Byte of Accounting, Inc. acquired $52,000 in cash from Lauryn and issued 2,600 shares of its common stock.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 1:\u00a0 Byte of Accounting, Inc. issued 2,600 shares of its common stock to Ahmad Sartawi after $22,000 in cash and computer equipment with a fair market value of $30,000 were received.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 1:\u00a0 Byte of Accounting, Inc. issued 2,148 shares of its common stock after acquiring\u00a0 from Courtney $33,000 in cash, computer equipment with a fair market value of $9,200 and office equipment with a fair value of $760.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 2:\u00a0 A down payment of $34,000 in cash was made on additional computer equipment that was purchased for $170,000.\u00a0 A five-year note was executed by Byte for the balance.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 4:\u00a0 Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 8:\u00a0 Unsatisfactory office equipment costing $100\u00a0 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 10:\u00a0 Byte paid $26,000 on the balance it owed on the June 2 purchase of computer equipment.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 14: A one-year insurance policy covering its computer equipment was purchased by Byte for $5,304 in cash.\u00a0 The effective date of the policy was June 16.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 16:\u00a0 A check in the amount of\u00a0 $7,250 was received for consulting revenue.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 16:\u00a0 Byte purchased a building and the land it is on for $107,000, to house its repair facilities and to store computer equipment.\u00a0 The lot on which the building is located is valued at $17,000. The balance of the cost is to be allocated to the building.\u00a0 Byte made a cash down payment of $10,700\u00a0 and executed a mortgage for the balance.\u00a0 The mortgage is payable in eight equal annual installments beginning July 1.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 17:\u00a0 Cash of $5,400 was paid for rent for June, July and August.\u00a0 Put the total amount into the Prepaid Rent account.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 17:\u00a0 Received a bill of $425 from the local newspaper for advertising.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 21:\u00a0 Accounts payable in the amount of $400 were paid.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 21:\u00a0 A fax machine for the office was purchased for $675 cash.\u00a0<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 21: Billed various miscellaneous local customers $4,400 for consulting services performed.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 22:\u00a0 Paid salaries of $985 to equipment operators for the week ending June 18.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 22:\u00a0 Received a bill for $1,315 from Computer Parts and Repair Co. for repairs to the computer equipment.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 22:\u00a0 Paid the advertising bill that was received on June 17.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 23:\u00a0 Purchased office supplies for $580 on credit.\u00a0 Record the purchase as an increase to the assets.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 23:\u00a0 Cash in the amount of $3,525 was received on billings.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 28:\u00a0 Billed $5,700 to miscellaneous customers for services performed to June 25.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 29:\u00a0 Paid the bill received on June 22, from Computer Parts and Repairs Co.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 29:\u00a0 Cash in the amount of $5,400 was received for billings.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 29:\u00a0 Paid salaries of $985 to equipment operators for the week ending June 25.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 30:\u00a0 Received a bill for the amount of $940 from O & G Oil and Gas Co.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nJune 30:\u00a0 Paid a cash dividend of $0.19 per share to the three shareholders of Byte.\u00a0 [IMPORTANT NOTE:\u00a0 The number of shares of capital stock outstanding can be determined from the first three transactions.]<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nAdjusting Entries – Round to two decimal places.\u00a0<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nThe rent payment made on June 17 was for June, July and August.\u00a0 Expense the amount associated with one month’s rent.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nA physical inventory showed that only $236.00 worth of office supplies remained on hand as of June 30.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nThe annual\u00a0 interest rate on the mortgage payable was 8.50 percent.\u00a0 Interest expense for one-half month should be computed because the building and land were purchased and the liability incurred on June 16.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nInformation relating to the prepaid\u00a0 insurance may be obtained from the transaction recorded on June 14.\u00a0 Expense the amount associated with one half month’s insurance.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nA\u00a0 review of Byte\u2019s job worksheets show that there are unbilled revenues in the amount of $5,500 for the period of June 28-30.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nThe fixed assets have estimated useful lives as follows:<\/td>\n<\/tr>\n\nBuilding – 31.5 years<\/td>\n<\/tr>\n\nComputer Equipment – 5.0 years<\/td>\n<\/tr>\n\nOffice Equipment – 7.0 years<\/td>\n<\/tr>\n\nUse the straight-line method of depreciation.\u00a0 Management has decided that assets purchased during a month are treated as if purchased on the first day of the month.\u00a0 The building\u2019s scrap value is $7,000. The office equipment has a scrap value of $400.\u00a0 The computer equipment has no scrap value.\u00a0 Calculate the depreciation for one month.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nA review of the payroll records show that unpaid salaries in the amount of $591.00 are owed by\u00a0 Byte for three days, June 28 – 30.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nThe note payable relating to the June 2,\u00a0 and 10 transactions is a five-year note, with interest at the rate of 12 percent annually.\u00a0 Interest expense should be computed based on a 360 day year.<\/td>\n<\/tr>\n\n[IMPORTANT NOTE:\u00a0 The original note on the computer equipment purchased on June 2 was $136,000.\u00a0\u00a0 On June 10, eight days later, $26,000 was repaid.\u00a0 Interest expense must be<\/td>\n<\/tr>\n\ncalculated on the $136,000 for eight days.\u00a0 In addition, interest expense on the $110,000 balance of the loan ($136,000 less $26,000 = $110,000) must be calculated for the 20 days remaining in the month of June.]<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nIncome taxes are to be computed at the rate of 25 percent of net income before taxes.\u00a0<\/td>\n<\/tr>\n\n[IMPORTANT NOTE:\u00a0 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.\u00a0 The worksheet contains all of the accounts and their balances which you can then transfer to the appropriate financial statement.]\u00a0<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nClosing Entries<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nClose the revenue accounts.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nClose the expense accounts.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nClose the income summary account.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n\nClose the dividends account.<\/td>\n<\/tr>\n\n\u00a0<\/td>\n<\/tr>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Byte of Accounting, Inc. \u00a0 Description of transaction \u00a0 June 1:\u00a0\u00a0 Byte of Accounting, Inc. acquired $52,000 in cash from Lauryn and issued 2,600 shares of its common stock. \u00a0 June 1:\u00a0 Byte of Accounting, Inc. issued 2,600 shares of its common stock to Ahmad Sartawi after $22,000 in cash and computer equipment with a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-12450","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/12450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=12450"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/12450\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=12450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=12450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=12450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}