Question

journalize the following transactions:

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 $700.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432.

June 8: Unsatisfactory office equipment costing $140.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte.

June 8: Purchased office supplies for $1,700.00 from Staples on account. The invoice number was 61298. Included in the purchase was 10 units of Super RoutePro at a cost of $20.00 each.

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 $5,808.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387.

June 16: Checks in the amount of $6,750.00 were received for services performed for cash customers.

June 16: Byte purchased a building and the land it is on for $125,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $20,000.00. The balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $12,500.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance.

Answer 1

1) 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.

Dr. Office equipment $165,000

Cr Cash $33,000

Cr. Notes payable $132,000

　

2) June 4: Additional office equipment costing $700.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432.

Dr. Office equipment $700

Cr. Notes payable $700

3) June 8: Unsatisfactory office equipment costing $140.00 from invoice number 98432 was returned to Discount Computer for credit to be applied against the outstanding balance owed by Byte.

Dr. Notes payable $700

Cr. Office equipment $700

4) June 8: Purchased office supplies for $1,700.00 from Staples on account. The invoice number was 61298. Included in the purchase was 10 units of Super RoutePro at a cost of $20.00 each

Dr. Office supplies $1,700

Cr. Accounts payable $1,700

　

5) 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

Dr. Notes payable $25,250

Cr. Cash $25,250

　

6) June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer equipment for $5,808.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387.

Dr. Prepaid insurance $5,808

Cr. Cash $5,808

7) June 16: Checks in the amount of $6,750.00 were received for services performed for cash customers

Dr. $Cash

Cr. Computer and consulting $6,750

8) June 16: Byte purchased a building and the land it is on for $125,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $20,000.00. The balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $12,500.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance.

Dr. Building $105,000

Dr. Land $20,000

Cr. Cash $12,500

Cr. Mortgage payable $112,500