Question

Paste Copy Format BIU-- - Merge & Center DA X ✓ fx June 1: Byte of Accounting, Inc. issued 2,610 shares of its common stock to Jeremy after $27,040 inca 3 Transaction Byte of Accounting, Inc. Akaolisa Ngwu 6023 Description of transaction June 1: Byte of Accounting, Inc. issued 2,610 shares of its common stock to Jeremy after $27.040 in cash and computer equipment with a fair market value of $40,820 were received June 1: Byte of Accounting, Inc. issued 2,745 shares of its common stock after acquiring from Courtney $55.900 in cash, computer equipment with a fair market value of $14,560 and office equipment with a fair value of $910. 1 1111111111111111 June 1: Byte of Accounting, Inc. acquired S62,400 in cash from Akalisa Ngwu and issued 2,400 shares of its common stock 1 111111111111 June 2: A down payment of $34,000 in cash was made on additional computer equipment that was purchased for $170,000. A five-year note was executed by Byte for the balance June 4: Additional office equipment costing $600 was purchased on credit from Discount Computer Corporation June 8: Unsatisfactory office equipment costing S120 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte 07 June 10: Byte paid 526,000 on the balance towed on the June 2 parchase of computer equipment Line 16 Edit 17 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 $6,500 was received 10. June 16: Byte purchased a building and the land it is on for $119,000, to house is nepair 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 installments beginning July 1 June 17: Cash of 56,300 was paid for rent for June July and August Put the amount mo me round Rent account. 12. June 17: Received a bill of $475 from the local newspaper for hvertising 13 14 June 21: Billed various miscellaneous local kamers 54,700 for consulting se June 21: A fax machine for the office was purchased for $825 cash 15 June 21: Accounts payable in the amount of $480 were paid 34 1 6 June 22: Paid the advertising bill that was received on June 17. Introduction FAQ Welcome Chart of Accounts Transactions Gener

Answer 1

In the books of Byte of Accounting Inc. :

Transaction / Event	Date	Account Titles	Debit	Credit
			$	$
01.	June 1	Cash	27,040
		Computer Equipment	40,820
		Common Stock		67,860
02	June 1	Cash	55,900
		Computer Equipment	14,560
		Office Equipment	910
		Common Stock		71,370
03	June 1	Cash	62,400
		Common Stock		62,400
04	June 2	Computer Equipment	170,000
		Cash		34,000
		Notes Payable		136,000
05	June 4	Office Equipment	600
		Accounts Payable		600
06	June 8	Accounts Payable	120
		Office Equipment		120
07	June 10	Note Payable	26,000
		Cash		26,000
08	June 14	Prepaid Insurance	5,472
		Cash		5,472
09	June 16	Cash	6,500
		Consulting Revenue		6,500
10	June 16	Land	19,000
		Building	100,000
		Cash		11,900
		Mortgage Payable		107,100
11.	June 17	Prepaid Rent	6,300
		Cash		6,300
12.	June 17	Advertising Expense	475
		Accounts Payable		475
13.	June 21	Accounts Receivable	4,700
		Consulting Revenue		4,700
14.	June 21	Office Equipment	825
		Cash		825
15.	June 21	Accounts Payable	480
		Cash		480
16.	June 22	Accounts Payable	475
		Cash		475
17.	June 22	Repairs Expense	1,090
		Accounts Payable		1,090
18	June 22	Salaries and Wages Expense	1,010
		Cash		1,010
19.	June 23	Cash	3,765
		Accounts Receivable		3,765
20	June 23	Office Supplies	480
		Accounts Payable		480
21.	June 28	Accounts Receivable	5,385
		Service Revenue		5,385
22.	June 29	Cash	5,101
		Accounts Receivable		5,101
23.	June 29	Accounts Payable	1,090
		Cash		1,090
24.	June 29	Salaries and Wages Expense	1,010
		Cash		1,010
25.	June 30	Oil and Gas Expense	890
		Accounts Payable		890
26.	June 30	Dividends	1,240.80
		Cash		1,240.80
Adjusting Entries
27	June 30	Rent Expense	2,100
		Prepaid Rent		2,100
28.	June 30	Office Supplies Expense	289
		Office Supplies		289
29.	June 30	Interest Expense ( 107,100 * 8.25 % x 1/24 )	368.16
		Interest Payable		368.16
30.	June 30	Insurance Expense	228
		Prepaid Insurance		228
31	June 30	Accounts Receivable	5,625
		Service Revenue		5,625
32	June 30	Depreciation Expense	4,027.41
		Accumulated Depreciation : Building		244.71
		Accumulated Depreciation: Computer Equipment		3,756.33
		Accumulated Depreciation: Office Equipment		26.37
33	June 30	Salaries and Wages Expense	606
		Salaries and Wages Payable		606
34	June 30	Interest Expense [ ( 136,000 x 12 % x 8/360) + 110,000 x 12 % x 20/360 ]	1,096
		Interest Payable		1,096
35.	June 30	Income Tax Expense	2,255.11
		Income Taxes Payable		2,255.11
Closing Entries
36.	June 30	Consulting Revenue	11,200
		Service Revenue	11,010
		Income Summary		22,210
37.	June 30	Income Summary	15,444.68
		Rent Expense		2,100
		Insurance Expense		228
		Office Supplies Expense		289
		Salaries and Wages Expense		2,626
		Depreciation Expense		4,027.41
		Repairs Expense		1,090
		Oil and Gas Expense		890
		Advertising Expense		475
		Interest Expense		1,464.16
		Income Tax Expense		2,255.11
38.	June 30	Income Summary	6,765.32
		Retained Earnings		6,765.32
39.	June 30	Retained Earnings	1,240.80
		Dividends		1,240.80