this is the data A Byte of Accounting, Inc. d Balance Sheet As of June 22, 2018
ID: 2525847 • Letter: T
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this is the data
A Byte of Accounting, Inc. d Balance Sheet As of June 22, 2018 Assets Current Assets 1110 Cash 1120 Accounts Receivable 1130 Prepaid Insurance 1140 Prepaid Rent 1150 Office Supplies Total Long-Term Assets 1211 Office Equip. 1212 Accum. Depr.-Office Equip. 1311 Computer Equip. 1312 Accum. Depr.-Computer Equip. 1411 Building Cost 1412 Accum. Depr.-Building 1510 Land Total Total Assets Liabilities Current Liabilities 2101 Accounts Payable 2102 Advanced Payment 2103 Interest Payable 2105 Salaries Payable 2106 Income Taxes Payable Total Long-Term Liabilities 2201 Mortgage Payable 2202 Notes Payable Total Total Liabilities Stockholder's Equity 3100 Capital Stock 3200 Retained Earnings Total Total Liabilities and Stockholder's Equity 1 You must finish the worksheet before you can complete the Balance Sheet, see FAQ 02.this is the data
Transaction Description of transaction 01. June 1: Byte of Accounting, Inc. issued 2,640 shares of its common stock to Jeremy after $31,030 in cash and computer equipment with a fair market value of $45,530 were received. 02. June 1: Byte of Accounting, Inc. issued 2,382 shares of its common stock after acquiring from Courtney $50,750 in cash, computer equipment with a fair market value of $17,400 and office equipment with a fair value of $928. 03. June 1: Byte of Accounting, Inc. acquired $87,000 in cash from angel and issued 3,000 shares of its common stock. 04. June 2: A down payment of $30,000 in cash was made on additional computer equipment that was purchased for $150,000. A five-year note was executed by Byte for the balance. 05. June 4: Additional office equipment costing $300 was purchased on credit from Discount Computer Corporation. 06. June 8: Unsatisfactory office equipment costing $60 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte. 07. June 10: Byte paid $23,000 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 $4,968 in cash. The effective date of the policy was June 16. 09. June 16: Computer consultation revenue of $6,500 was received. 10. June 16: Byte purchased a building and the land it is on for $119,000, to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $19,000. The balance of the cost is to be allocated to the building. Byte made a cash down payment of $11,900 and executed a mortgage for the balance. The mortgage is payable in eight equal annual installments beginning July 1. 11. June 17: Cash of $4,800 was paid for rent for June and July. Put the total amount into the Prepaid Rent account. 12. June 17: Received a bill of $325 from the local newspaper for advertising. 13. June 21: Billed various miscellaneous local customers $4,400 for consulting services performed. 14. June 21: A fax machine for the office was purchased for $800 cash. 15. June 21: Accounts payable in the amount of $240 were paid. 16. June 22: Paid the advertising bill that was received on June 17. 17. June 22: Received a bill for $1,215 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 $3,525 was received on billings. 20. June 23: Purchased office supplies for $505 on credit. Record the purchase as an increase to the assets. 21. June 28: Billed $5,805 to miscellaneous customers for services performed to June 25. 22. June 29: Cash in the amount of $5,500 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 $915 from O & G Oil and Gas Co. 26. June 30: Paid a cash dividend of $0.20 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.] 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 $202.00 worth of office supplies remained on hand as of June 30. 29. The annual interest rate on the mortgage payable was 9.25 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 $5,750 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 $300. 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 $120,000. On June 10, eight days later, $23,000 was repaid. Interest expense must be calculated on the $120,000 for eight days. In addition, interest expense on the $97,000 balance of the loan ($120,000 less $23,000 = $97,000) 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.]Explanation / Answer
BYTE OF ACCOUNTING Inc. Balance Sheet as at June 30, 2018 Assets Current Assets Cash 99487 Accounts Receivable 12430 Prepaid Insurance 4761 Prepaid Rent 2400 Office Supplies 202 Current Assets 119280 Office Equipment 1968 Accumulated Depr. - Office Equipment 20 1948 Computer Equipment 212930 Accumulated Depr. - Computer Equipment 3549 209381 Building 100000 Accumulated Depr. - Building 242 99758 Land 19000 Total Assets 449367 Liabilities and stockholders' equity Current Liabilities Accounts Payable 1420 Interest Payable 1460 Salaries Payable 621 Income Tax Payable 2282 Dividends Payable 1604 Current Liabilities 7387 Mortgage Payable 107100 Notes Payable 97000 Total Liabilities 211487 Stockholders' Equity Capital Stock 232638 Retained Earnings Net income 6846 Dividends 1604 Balance as at June 30, 2018 5242 Total Stockholders' Equity 237880 Total Liabilities and Stockholders' Equity 449367 Depreciation Expense: Buildings - (100,000-8,500) (91,500/31.5)/12 242 Office Equipment (1,968 - 300) (1,668 /7 / 12) 20 Computer equipment (212,930 / 5 /12) 3549 Total Depreciation 3811 Interest on note payable On 120,000 for 10 days @12% pa 400 On 97,000 for 10 days @12% pa 647 1047 Interest on mortgage loan (107,100 x 9.25% / 24) 413 Total interest 1460 BYTE OF ACCOUNTING Inc. Worksheet for Trial Balance for the month of June 30, 2018 Account Transactions Unadjusted Adjustments Adjusted Income statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 178805 79318 99487 99487 99487 Accounts Receivable 10205 3525 6680 5750 12430 12430 Prepaid Insurance 4968 4968 207 4761 4761 Prepaid Rent 4800 4800 2400 2400 2400 Office Supplies 505 505 303 202 202 Office Equipment 1968 1968 1968 1968 Accumulated Depr. - Office Equipment 0 20 20 20 Computer Equipment 212930 212930 212930 212930 Accumulated Depr. - Computer Equipment 0 3549 3549 3549 Building 100000 100000 100000 100000 Accumulated Depr. - Building 0 242 242 242 Land 19000 19000 19000 19000 Accounts Payable 1780 3200 1420 1420 1420 Advance Payment 0 0 0 Interest Payable 0 1460 1460 1460 Salaries Payable 0 621 621 621 Income Tax Payable 0 2282 2282 2282 Dividends Payable 1604 1604 1604 1604 Mortgage Payable 107100 107100 107100 107100 Notes Payable 23000 120000 97000 97000 97000 Capital Stock 232638 232638 232638 232638 Retained Earnings 0 0 5242 Dividends 1604 1604 1604 Consultation Revenue 16705 16705 5750 22455 22455 Advertising Expense 325 325 325 325 Salaries Expense 2070 2070 621 2691 2691 Rent Expense 0 2400 2400 2400 Repair Expense 1215 1215 1215 1215 Insurance Expense 0 207 207 207 Depreciation Expense 0 3811 3811 3811 Bad Debt Expense 0 0 0 Office Supplies Expense 0 303 303 303 Utilities Expense 915 915 915 915 Interest Expense 0 1460 1460 1460 Income Tax Expense 0 2282 2282 2282 Total 564090 564090 456467 456467 16834 16834 470391 470391 15609 22455 453178 453178 Income Summary 6846 Grand total 564090 564090 456467 456467 16834 16834 470391 470391 22455 22455 453178 453178
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