Question;June;1: Hudson Bloom invested $133,906.00;cash and computer equipment with a fair market value of $35,420.00 in his new;business, Byte of Accounting.;June;1: Check # 5000 was used to purchased;office equipment costing $736.00 from Office Express. The invoice number was 87417.;June;1: Check # 5001 was used to purchased;computer equipment costing $11,040.00 from Thomas Cummings. The invoice number was 20117.;June;2: Check # 5002 was used to make a;down payment of $33,000.00 on additional computer equipment that was;purchased from Royce Computers, invoice number 76542. The full price of the computer was;$165,000.00. A five-year note was;executed by Byte for the balance.;June;4: Additional office equipment costing;$400.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432.;June;8: Unsatisfactory office equipment;costing $80.00 from invoice number 98432 was returned to Discount Computer;for credit to be applied against the outstanding balance owed by Byte.;June;10: Check # 5003 was used to make a;$25,250.00 payment reducing the prinicpal owed on the June 2 purchase of;computer equipment from Royce Computers.;June;14: Check # 5004 was used to purchase a one-year insurance policy covering;its computer equipment for $5,472.00 from Seth's Insurance. The effective date of the policy was June;16 and the invoice number was 2387.;June;16: A check in the amount of $8,250.00 was received for services;performed for Pitman Pictures.;June;16: Byte purchased a building and the;land it is on for $149,000.00 to house its repair facilities and to store;computer equipment. The lot on which;the building is located is valued at $24,000.00. The balance of the cost is to be allocated;to the building. Check # 5005 was used;to make the down payment of $14,900.00.;A thirty year mortgage with an inital payement due on August 1st, was;established for the balance.;June;17: Check # 5006 for $7,500.00 was;paid for rent of the office space for June, July and August.;June;17: Received invoice number 26354 in;the amount of $475.00 from the local newspaper for advertising.;June;21: Billed various miscellaneous local customers $4,200.00 for consulting;services performed.;June;21: Check # 5008 was used to purchase;a fax machine for the office from Office Machines Express for $700.00. The invoice number was 975-328.;June;21: Accounts payable in the amount of;$320.00 were paid with Check # 5007.;June;22: Check # 5010 was used to pay the;advertising bill that was received on June 17.;June;22: Received a bill for $1,140.00 from;Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254.;June;22: Check # 5009 was used to pay;salaries of $1,035.00 to equipment operators for the week ending June;18. Ignore payroll taxes.;June;23: Cash in the amount of $3,365.00;was received on billings.;June;23: Purchased office supplies for;$705.00 from Staples on account. The;invoice number was 65498.;June;28: Billed $6,225.00 to miscellaneous;customers for services performed to June 25.;June;29: Cash in the amount of $5,899.00;was received for billings.;June;29: Paid the bill received on June 22;from Computer Parts and Repairs Co with Check # 5011.;June;29: Check # 5012 was used to pay;salaries of $1,035.00 to equipment operators for the week ending June;25. Ignore payroll taxes.;June;30: Received a bill for the amount of;$840.00 from O & G Oil and Gas Co.;The invoice number was 784537.;June;30: Check # 5013 was used to pay for;airline tickets of $2,400.00 to send the kids to Grandma Ellen for the;July 4th holiday.;Adjusting;Entries - Round to two decimal places.;The rent;payment made on June 17 was for June, July and August. Expense the amount associated with one;month's rent.;A;physical inventory showed that only $292.00 worth of office supplies remained;on hand as of June 30.;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.;Record;a journal entry to reflect that one half month's insurance has expired.;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.;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 $450.;The computer equipment has no scrap value. Calculate the depreciation for one month.;A review;of the payroll records show that unpaid salaries in the amount of $621.00 are;owed by Byte for three days, June 28 -;30. Ignore payroll taxes.;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;Close;the revenue accounts.;Close;the expense accounts.;Close the income summary;account.;Close;the withdrawals account.
Paper#38903 | Written in 18-Jul-2015Price : $22