Reference no: EM132648297
Transaction 31 using FIFO for ageneral journal entry(adjusting the journal entry).
Problem 1: 31- A physical inventory showed that only $358.00 worth of general office supplies remained on hand as of June 30. This did not include any of the Super RoutePro. There were 5 units of Super RoutePro on hand. We use FIFO to determine the valuation of the supplies.
Other transactions:
Transaction Description of transaction
01. June 1: Jeremy made an investment in Byte of Accounting, Inc., by purchasing 2,630 shares of its common stock paying $33,011.00 in cash and by contributing computer equipment with a fair market value of $45,915.30. The par value of the common stock was $0.01 per share.
02. June 1: Courtney made an investment in Byte of Accounting, Inc., by purchasing 561 shares of its common stock by contributing computer equipment with a fair market value of $15,605.20 and office equipment with a fair value of $1,230.41. The par value of the common stock was $0.01 per share.
03. June 1: Alissa McGraw made an investment in Byte of Accounting, Inc. by purchasing 4,150 shares of its common stock for $124,541.50 cash. The par value of the common stock was $0.01 per share.
04. June 2: Check # 5002 was used to make a down payment of $36,000.00 on additional computer equipment that was purchased from Royce Computers, invoice number 76542. The full price of the computer was $180,000.00. A five-year note was executed by Byte for the balance.
05. June 4: Additional office equipment costing $500.00 was purchased on credit from Discount Computer Corporation. The invoice number was 98432.
06. 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.
07. June 10: Check # 5003 was used to make a $27,500.00 payment reducing the principal owed on the June 2 purchase of computer equipment from Royce Computers.
08. June 10: 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 $40.00 each.
09. June 14: Check # 5004 was used to purchase a one-year insurance policy covering its computer equipment for $5,472.00 from Seth's Insurance. The effective date of the policy was June 16 and the invoice number was 2387.
10. June 16: Checks in the amount of $8,510.00 was received for services performed for cash customers.
11. June 16: Byte purchased a building and the land it is on for $119,000.00 to house its repair facilities and to store computer equipment. The lot on which the building is located is valued at $19,000.00. The balance of the cost is to be allocated to the building. Check # 5005 was used to make the down payment of $11,900.00. A thirty year mortgage with an inital payement due on August 1st, was established for the balance.
12. June 17: Check # 5006 for $6,900.00 was paid for rent of the office space for June, July and August.
13. June 17: Received invoice number 26354 in the amount of $475.00 from the local newspaper for advertising.
14. June 21: Billed various miscellaneous local customers $4,700.00 for consulting services performed.
15. June 21: Check # 5007 was used to purchase a fax machine for the office from Office Machines Express for $825.00. The invoice number was 975-328.
16. June 21: Accounts payable in the amount of $400.00 were paid with Check # 5008.
17. June 22: Check # 5009 was used to pay the advertising bill that was received on June 17.
18. June 22: Received a bill for $1,240.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254.
19. June 22: Check # 5010 was used to pay salaries of $960.00 to equipment operators for the week ending June 18. Ignore payroll taxes.
20. June 23: Cash in the amount of $3,765.00 was received on billings.
21. June 23: Purchased office supplies for $850.00 from Staples on account. The invoice number was 65498. Included in the purchase was 10 units of Super RoutePro at a cost of $45.00 each.
22. June 28: Billed $5,805.00 to miscellaneous customers for services performed to June 25.
23. June 29: Cash in the amount of $5,500.00 was received for billings.
24. June 29: Paid the bill received on June 22, from Computer Parts and Repairs Co with Check # 5011.
25. June 29: Check # 5012 was used to pay salaries of $960.00 to equipment operators for the week ending June 25. Ignore payroll taxes.
26. June 30: Received a bill for the amount of $990.00 from O & G Oil and Gas Co. The invoice number was 784537.
27. June 30: Check # 5013 was used to pay for a cash dividend of $0.20 per share to Jeremy, a shareholder of Byte.
28. June 30: Check # 5014 was used to pay for a cash dividend of $0.20 per share to Alissa McGraw a shareholder of Byte.
29. June 30: Check # 5015 was used to pay for a cash dividend of $0.20 per share to Courtney, a shareholder of Byte.