Question a: Prepare an Income Statement

Question b: Prepare a Statement of Changes in Retained Earnings

Question C: Prepare a Balance Sheet

Transaction Account Debit Date Name Description Credit 01 01 Jun 01 Jun 01 56,000.00 1110 Cash 3100 Capital Stock common stock issued common stock issued 56,000.00 02 02 02 Jun 01 Jun 01 Jun 01 1110 Cash 1311 Computer Equip. 3100 Capital Stock common stock issued common stock issued common stock issued 29,400.00 41,440.00 70,840.00 03 03 03 03 Jun 01 Jun 01 Jun 01 Jun 01) 1110 Cash 1311 Computer Equip. 1211 Office Equip. 3100 Capital Stock common stock issued common stock issued common stock issued common stock issued 60,200.00 11,760.00 1,316.00 73,276.00 04 04 04 Jun 02 Jun 02 Jun 02 1311 Computer Equip. 1110 Cash 2202 Notes Payable computer bought in cash and notel 135,000.00 computer bought in cash and notes payable computer bought in cash and notes payable 27,000.00 108,000.00 500.00 05 05 Jun 04 Jun 04 1211 Office Equip. 2101 Accounts Payable equipment bought on credit equipment bought on credit 500.00 14 14 650.00 Jun 21 Jun 21 1211 Office Equip. 1110 Cash fax machine purchased fax machine purchased 650.00 15 15 4,700.00 Jun 21 Jun 21 1120 Accounts Receivable Accounts payable paid 4100 Computer & Consultin Accounts payable paid 4,700.00 985.00 16 16 Jun 22 Jun 22 5020 Salary Expense 1110 Cash paid the advertising bill received ju paid the advertising bill received june 17 985.00 17 17 Jun 22 Jun 22 5040 Repairs & Maint. Expereceived the advertising bill receiv 1,240.00 2101 Accounts Payable received the advertising bill received june 17 1,240.00 18 18 250.00 Jun 22 Jun 22 2101 Accounts Payable 1110 Cash paid salaries to equipment repairs paid salaries to equipment repairs 250.00 19 19 630.00 Jun 23 Jun 23 1150 Office Supplies 2101 Accounts Payable cash received from customers cash received from customers 630.00 3,765.00 20 20 Jun 23 Jun 23 1110 Cash purchased office supplies on cred 1120 Accounts Receivable purchased office supplies on credit 3,765.00 21 21 Jun 28 Jun 28 1120 Accounts Receivable billed customers for consulting ser 6,225.00 4100 Computer & Consultin billed customers for consulting services 6,225.00 1,240.00 22 22 Jun 29 Jun 29 2101 Accounts Payable 1110 Cash cash received cash received 1,240.00 5,899.00 23 23 Jun 29 Jun 29 1110 Cash paid bill 1120 Accounts Receivable paid bill 5,899.00 985.00 24 24 Jun 29 Jun 29 5020 Salary Expense 1110 Cash paid salaries to equipment operato paid salaries to equipment operators 985.00 815.00 25 25 Jun 30 Jun 30 5050 Oil & Gas Expense 2101 Accounts Payable received bill from O&G Oil and Gas received bill from O&G Oil and Gas Co. 815.00 26 26 1,715.28 Jun 30 Jun 30 3300 Dividends 1110 Cash paid dividend of $0.16 per share paid dividend of $0.16 per share 1,715.28 2,400.00 27 27 Jun 30 Jun 30 5010 Rent Expense 1140 Prepaid Rent one month rent expense one month rent expense 2,400.00 371.00 28 28 Jun 30 Jun 30 5080 Supplies Expense 1150 Office Supplies supplies expense supplies expense 371.00 29 29 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable interest expense for one-half mon 375.00 interest expense for one-half month on mortgage 375.00 221.00 30 30 Jun 30 Jun 30 5100 Insurance Expense depreciation for one month 1130 Prepaid Insurance depreciation for one month 221.00 5,125.00 31 31 Jun 30 Jun 30 1120 Accounts Receivable unbilled revenue recorded 4100 Computer & Consultin unbilled revenue recorded 5,125.00 3,415.36 32 32 32 32 Jun 30 Jun 30 Jun 30 Jun 30 5110 Depreciation Expense depreciation for one month 1412 Accum. Depr.-Buildin depreciation for one month 1312 Accum. Depr.-Compu depreciation for one month 1212 Accum. Depr.-Office depreciation for one month 255.29 3,136.67 23.40 591.00 33 33 Jun 301 Jun 30 5020 Salary Expense 2105 Salaries Payable unpaid salary unpaid salary 591.00 869.67 34 34 Jun 30 Jun 30 5090 Interest Expense 2103 Interest Payable interest on notes payable interest on notes payable 869.67 35 35 2,757.99 Jun 30 Jun 30 5120 Income Tax Expense income taxes computed 2106 Income Taxes Payab. income taxes computed 2,757.99 15,276.02 37 37 37 37 37 37 37 37 37 37 37 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 Jun 30 3400 Income Summary closing expense accounts 5010 Rent Expense closing expense accounts 5020 Salary Expense closing expense accounts 5030 Advertising Expense closing expense accounts 5040 Repairs & Maint. Expe closing expense accounts 5050 Oil & Gas Expense closing expense accounts 5080 Supplies Expense closing expense accounts 5090 Interest Expense closing expense accounts 5100 Insurance Expense closing expense accounts 5110 Depreciation Expense closing expense accounts 5120 Income Tax Expense closing expense accounts 2,561.00 2,400.00 250.00 221.00 1,240.00 815.00 3,415.36 371.00 1,244.67| 2,757.99 8,273.98 38 38 Jun 30 Jun 30 3400 Income Summary 3200 Retained Earnings closing income summary account closing income summary account 8,273.98 39 39 Jun 30 Jun 30 3200 Retained Earnings 3300 Dividends 1,715.28 closing the dividends account closing the dividends account 1,715.28 A Byte of Accounting, Inc. Statement of Changes in Retained Earnings For Month Ending June 30, 2021 Total Balance, Beginning of Period Net Income Dividends Balance, End of Period A Byte of Accounting, Inc. Balance Sheet As of June 30, 2021 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Rent Office Supplies Total Long-Term Assets Office Equip Accum. Depr.-Office Equip. Computer Equip Accum. Depr.-Computer Equip. Building Cost Accum. Depr.-Building Land Total Total Assets Liabilities $ Current Liabilities Accounts Payable Advanced Payment Interest Payable Salaries Payable Income Taxes Payable Total Long-Term Liabilities Mortgage Payable Notes Payable Total Total Liabilities Stockholder's Equity Capital Stock Retained Earnings Total Total Liabilities and Stockholder's Equity