Question

December 1: Anne made an investment in Byte of Accounting, Inc., by purchasing 2,000 shares of its common stock paying $48,000.00 in cash.  The par value of the common stock was $22.00 per share.

December 3:  Purchased a Ricoh Color copier for $5,200.00.  The invoice number was 61298.  We paid 10% and signed a 3 year note for the remaining balance.   Interest at a rate of 6% a year will be paid semiannually.

December 3:   Check # 6001  for $2,600.00 was paid for rent of the office space for December.  Rent is journalized to the prepaid rent account.

December 3:  In response to requests from our customers we have decided to purchase and install Super Toners at our clients locations. We received 19 Super Toners for resale to our customers at a cost of $21.00  per toner.  The Invoice number was 7249, and we will pay them within 30 days.

December 10:  Sold 13 Super toners to a customer on account for $53.00 each. The Sales order number was 12100, record the Sales Revenue.

December 10:  Sold 13 Super toners to a customer on account for $53.00 each. The Sales order number was 12100,  record the Cost of Goods Sold, using FIFO.

December 11:   Check #  6002  was used to pay salaries of $2,250.00 to equipment operators.  Ignore payroll taxes.

December 14:   Check # 6003   was used to purchase a one-year insurance policy covering its computer equipment for $6,504.00 from Seth's Insurance.  The effective date of the policy was December 16 and the invoice number was 2387.

December 15:   Lauryn paid $2,276.00 for airline tickets to send the kids to Grandma Ellen's for the holiday.

December 16: Received 5 Super Toners for resale to our customers.  The cost was $23.00 per toner.  The Invoice number was 7359, and we will pay them within 30 days.

December 17: We were informed that Mr. Madoff who has an account with us will never pay the $674.00 he owes us.  Record the transaction to write off Mr. Madoff's accounts receivable account using the allowance method.

December 17: We were informed that Mr. Madoff who has an account with us will never pay the $674.00 he owes us.  Record the transaction to write off Mr. Madoff's accounts receivable account using the allowance method.

December 17: Received invoice number 26354 in the amount of $750.00 from the local newspaper for advertising.

December 18: Check # 6004  was used to pay Accounts Payable in the amount of $1,020.00

December 19:  Sold 7 Super toners to a customer on account for $53.00 each. The Sales order number was 12100, record the Sales Revenue.

December 19:  Sold 7 Super toners to a customer on account for $53.00 each. The Sales order number was 12100,  record the Cost of Goods Sold, using FIFO.

December 21:  Record the cost of computers for various customers on account, $6,100.00.

December 21:   Billed various miscellaneous local customers $12,200.00 for computers that cost us $6,100.00, record the Sales Revenue.

December 21:   Billed various miscellaneous local customers $12,200.00 for computers that cost us $6,100.00, record the Cost of Goods Sold.

December 22:   Check #  6005  was used to pay salaries of $2,250.00 to equipment operators.  Ignore payroll taxes.

December 22:   Received a bill for $1,265.00 from Computer Parts and Repair Co. for repairs to the computer equipment.  The invoice number was 43254.

December 22:   Check # 6006  was used to pay the advertising bill that was previously received and recorded from the local newspaper for advertising, invoice number 26354.

December 22: Received 12 Super Toners for resale to our customers.  The cost was $25.00 per toner.  The Invoice number was 7988, and we will pay them within 30 days.

December 23: Cash from customers in the amount of $21,225.00 was received on billings.

December 23:  Record the cost of computers for various customers on account, $7,350.00.

December 28:   Billed various miscellaneous local customers $14,700.00 for computers that cost us $7,350.00, record the Sales Revenue.

December 28:   Billed various miscellaneous local customers $14,700.00 for computers that cost us $7,350.00,  record the Cost of Goods Sold.

December 28:   Paid the bill  that was previously received and recorded from Computer Parts and Repairs Co with Check # 6007 .  The invoice number was 43254.

December 29: Cash from customers in the amount of $14,375.00 was received on billings.

December 29:  Received a bill for the amount of $630.00 from AT&T for the telephone.  The invoice number was 784537.

December 30:   Check #  6008  was used to pay salaries of $2,250.00 to equipment operators.  Ignore payroll taxes.

December 30: Check # 6009  was used to pay was used to pay for a cash dividend of $.20 per share to Lauryn, a shareholder of Byte.

December 30: Check #  was used to pay was used to pay for a cash dividend of $.20 per share to Anne, a shareholder of Byte.

December 30: Received a $7,965.00 check from Le Corporation for merchandise ordered which will be delived January 16th.

Please note:  The bookkeeper that we had before you arrived was not very good.  He never created a Trial Balance and after he left we realized that he neglected to record the issuances of the bond issued on January 1 of this year and the recording of the interest payment on June 30. Since we do not make entries into "closed" periods record the entries as of December 31st.

`

December 31:  On January 1, Byte received $193,390.20 when they issued a $180,000.00, 7%, 10 year bond. Interest is to be paid semiannually on June 30 and December 31.  The market rate was 6%.  This entry was never recorded.

December 31: Please record the timely interest payment for the bond using the straight line method that was made on June 30th, with check # 5367.  This entry was never recorded..

December 31: Please record the timely interest payment for the bond using the straight line method that was made on December 31st, with check # 6010. I need help journalizing these entries! The accounts given to me are: 1110 Cash Debit 1120 Accounts Receivable Debit 1121 Allowance for Doubtful Accounts Credit 1130 Prepaid Insurance Debit 1140 Prepaid Rent Debit 1150 Office Supplies Debit 1160 Inventory Debit 1211 Office Equipment Debit 1212 Accum. Depr.-Office Equip. Credit 1311 Computer Equipment Debit 1312 Accum. Depr.-Computer Equip. Credit 2101 Accounts Payable Credit 2102 Unearned Revenue Credit 2103 Interest Payable Credit 2105 Salaries Payable Credit 2106 Income Taxes Payable Credit 2202 Notes Payable Credit 2210 Bond Payable Credit 2212 Premium on Bond Payable Credit 3100 Capital Stock Credit 3120 Paid in Capital in Excess of Par Credit 3200 Retained Earnings Credit 3300 Dividends Debit 4100 Sales Revenue Credit 5010 Rent Expense Debit 5020 Salary Expense Debit 5030 Advertising Expense Debit 5040 Repairs & Maint. Expense Debit 5080 Supplies Expense Debit 5090 Interest Expense Debit 5100 Insurance Expense Debit 5110 Depreciation Expense Debit 5120 Bad Debt Expense Debit 5140 Telephone Expense Debit 5150 Income Tax Expense Debit 5300 Cost of Goods Sold Debit 5301 Error Debit

Answer 1

Dec-01	Investment in Shares A/c	Dr	48000
	Bank	Cr	48000
Dec-03	Office Equipment	Dr	5200
	Bank	Cr	520
	Notes Payable	Cr	4680
Dec-03	Rent	Dr	2600
	Prepaid Rent	Cr	2600
Dec-03	Inventory	Dr	399
	Creditors	Cr	399
Dec-10	Debtor	Dr	689
	Revenue	Cr	689
Dec-10	COGS	Dr	273
	Inventory	Cr	273
Dec-11	Salaries	Dr	2250
	Bank	Cr	2250
Dec-14	Insurance	Dr	272
	Prepaid Insurance	Dr	6232
	Bank	Cr	6504
Dec-15	Capital	Dr	2276
	Bank	Cr	2276
Dec-16	Inventory	Dr	115
	Creditors	Cr	115
Dec-17	Bad Debts	Dr	674
	Debtors	Cr	674
Dec-17	Advertising Expenses	Dr	750
	Expenses Payable	Cr	750
Dec-18	Accounts Payable	Dr	1020
	Bank	Cr	1020
Dec-19	Debtor	Dr	371
	Revenue	Cr	371
Dec-19	COGS	Dr	149
	Inventory	Cr	149
Dec-21	Inventory	Dr	6100
	Accounts Payable	Cr	6100
Dec-21	Debtor	Dr	12100
	Revenue	Cr	12100
Dec-21	COGS	Dr	6100
	Inventory	Cr	6100
Dec-22	Salaries	Dr	2250
	Bank	Cr	2250
Dec-22	Repair	Dr	1265
	Computer Parts & Repair Co.	Cr	1265
Dec-22	Expenses Payable	Dr	750
	Bank	Cr	750
Dec-22	Inventory	Dr	300
	Creditors	Cr	300
Dec-23	Cash	Dr	21225
	Debtors	Cr	21225
Dec-23	Inventory	Dr	7350
	Accounts Payable	Cr	7350
Dec-28	Debtor	Dr	14700
	Revenue	Cr	14700
Dec-28	COGS	Dr	7350
	Inventory	Cr	7350
Dec-28	Computer Parts & Repair Co.	Dr	1265
	Bank	Cr	1265
Dec-29	Cash	Dr	14375
	Debtors	Cr	14375
Dec-29	Telephone Expenses	Dr	630
	AT&T	Cr	630
Dec-30	Salaries	Dr	2250
	Bank	Cr	2250
Dec-30	Cash	Dr	400
	Dividend Income	Cr	400
Dec-30	Bank	Dr	7965
	Advance from Le Corporation	Cr	7965