Question

Create a worksheet showing the unadjusted trial balance, adjusting entries, adjusted trial balance, income statement, and balance sheet included with the data below. Also, create a pivot table.

Create a general ledger, worksheet, income statement, changes in retained earnings, and balance sheet with the data below.

June 1: Hudson Bloom invested $105,273.00 cash and computer equipment with a fair market value of $32,970.00 in his new business, Byte of Accounting.

June 1:   Check # 5000 was used to purchased office equipment costing $483.00 from Office Express. The invoice number was 87417.

June 1:   Check # 5001 was used to purchased computer equipment costing $9,240.00 from. The invoice number was 20117.

June 2: Check # 5002 was used to make a down payment of $35,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $175,000.00. A five-year note was executed by Byte for the balance.

June 4: Additional office equipment costing $500.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432.

June 8: Unsatisfactory office equipment costing $100.00 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 $26,750.00 payment reducing the principal 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 $6,312.00 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 $113,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $18,000.00. The balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $11,300.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance.

June 17: Check # 5006 for $3,200.00 was paid for rent for June and July.

June 17: Received invoice number 26354 in the amount of $400.00 from the local newspaper for advertising.

June 21: Billed various miscellaneous local customers $4,100.00 for consulting services performed.

June 21: Check # 5008 was used to purchase a fax machine for the office from Office Machines Express for $825.00. The invoice number was 975-328.

June 21: Accounts payable in the amount of $400.00 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 $1,090.00 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 $3,285.00 was received on billings.

June 23: Purchased office supplies for $555.00 from Staples on account. The invoice number was 65498.

June 28: Billed $5,280.00 to miscellaneous customers for services performed to June 25.

June 29: Cash in the amount of $5,001.00 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 $990.00 from O & G Oil and Gas Co. The invoice number was 784537.

June 30: Check # 5013 was used to pay for airline tickets of $1,500.00 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 and July. Expense the amount associated with one month's rent.

A physical inventory showed that only $225.00 worth of office supplies remained on hand as of June 30.

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.

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 $9,250 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 $8,500. 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.

Answer 1