Hello I am looking for some help with and intro to financal account project. The

Question

Hello I am looking for some help with and intro to financal account project. The project has 3 parts.

Part 1: Please show the correct Journal enteries.

Close the dividends account.

Part 2: Prepare Income statement and Blance sheet.  

Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2,620 shares of its common stock to Jeremy after $27,300 in cash and computer equipment with a fair market value of $40,820 were received. 02. June 1: Byte of Accounting, Inc. issued 2,528 shares of its common stock after acquiring from Courtney $50,700 in cash, computer equipment with a fair market value of $14,040 and office equipment with a fair value of $988. 03. June 1:   Byte of Accounting, Inc. acquired $52,000 in cash from camilo rojas and issued 2,000 shares of its common stock. 04. June 2: A down payment of $35,000 in cash was made on additional computer equipment that was purchased for $175,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $500 was purchased on credit from Discount Computer Corporation. 06. June 8: Unsatisfactory office equipment costing $100 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $26,750 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 $5,472 in cash. The effective date of the policy was June 16. 09. June 16: Computer consultation revenue of $7,000 was received. 10. June 16: Byte purchased a building and the land it is on for $113,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $18,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $11,300 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 11. June 17: Cash of $6,300 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. 13. June 21: Billed various miscellaneous local customers $4,600 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $825 cash. 15. June 21: Accounts payable in the amount of $400 were paid. 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,090 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 $3,685 was received on billings. 20. June 23: Purchased office supplies for $680 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed $5,280 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,001 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 $865 from O & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.15 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, July and August. Expense the amount associated with one month's rent. 28. A physical inventory showed that only $281.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 7.75 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 $5,500 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 $450. 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 $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.

Explanation / Answer

This is not at all fair to post such a big one as one question. Still I am answering part-A without he income tax part in adjusting Entries:

Part-1)

Jun 1:
Cash(db) $27,300
Computer Equipment (db) $40,820
Equity (cr)$68,120

Cash(db) $50,700
Computer Equipment (db) $14,040
Office Equipment (db) $988
Equity (cr)$65,728

Cash(db) $52,000
Equity (cr)$52,000

Jun 1 :Consolidation
Cash (db) 130,000
Computer Equipment (db) $54,860
Office Equipment(db) $988
Equity (cr) 185,848

Jun 2:
Computer Equipment (db) $175,000
Cash (cr) $35,000
Notes payable (cr) $140,000

Jun 4:
Computer Equipment (db) $35,000
Discount computer Corporation (cr) $35,000

Jun 8:
Computer Equipment (cr) $100
Discount computer Corporation (db) $100

Jun 10:
Cash (cr) $26,750
notes payable (db) $26,750

June 14:
Cash(cr) $5,472
Prepaid Expense-computer LF policy (dr)$5,472

Jun 16:
Revenue (cr) $7,000
Cash (dr) $7,000

Land: $18,000
Building (db) $95,000
Cash(cr) $11,300
Loan (cr) $101,700

Jun 17:
Prepaid rent (db) $6,300
Cash(cr) $6,300

Advertising expense(db) $275
Advertising expense payable (cr) $275

Jun 21:
Account receivable(db) $4,600
Revenue (cr) $4,600

Other equipment (db) $825
cash (cr) $825

Cash (cr) $400
Account payable (db) $400

Jun 22:

Cash (cr) $275
Advertising expense payable (db) $275

Repair expense(db) $109
Computer parts & repair (cr) $1090

Salries Expense(db) $1035
Cash (cr) $1035

Jun 23:
Account Receivable (cr) $3,685
Cash (db) $3,685

Office supplies (db) $680
supplies payable (cr) $680

Jun 28:
Accounts receivable others(db) $5,280
Revenue (cr) $5,280

Jun 29:
Cash (cr) $109
Computer parts & repair (db) $1090

Salries Expense(db) $1035
Cash (cr) $1035

Jun 30:
Oil and gas expense(db) $865
Oil and gas Co (cr) $865

Dividend (cr) (7148*.15) =$1072.2
Cash (cr) $1072.2

Adjusting Entries
-------------------
1)Rent expense (cr) 4200
Advance rent (db) 4200

2) Office Supplies (cr) 399
Office supplies expense (db) 399

3) Interest expense(db) (101700*7.75%*1.5/12)= 985.22
Interest payable (cr) 985.22

4)Prepaid insurance (cr) 684
Insurance expense (db) 684

5)Unbilled revnue (db) 5500
Revenue (cr) 5500

6)Building depreciation =( purchase-scrap)/no of months
=(95000-8500)/(31.5*12)=228.84

Office equipment depreciation =( purchase-scrap)/no of months
=(2213-450)/(7*12)=21

computer equipment depreciation =( purchase)/no of months
=(229860)/(5*12)=3831

Building depreciation expense (db) 228.84
Bulding depreciation (cr) 228.84

Building depreciation expense (db) 228.84
Bulding depreciation (cr) 228.84

office equipment depreciation expense (db) 21
office equipment depreciation (cr) 21

computerequipment depreciation expense (db) 3831
computerequipment depreciation (cr) 3831

7)Salaries expense( db)621
Salaries expense payable (cr) 621

8) Jun 2 nd notes payable is $140,000
Interest expese: (140000*8/360*12/100)=373.33
(113250*20/360*12/100)=755
=1128.33

Interese expense(db) 1128.33

Interese expense payabl (cr) 1128.33

  

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