Question

Due un 1/21 two weeks from Comprehensive Problem Instructions Aerial Architects, Inc. has been designing skyscrapers since 2010. The Company's post-closing trial balance as of December 31, 2018 is given below. CR *ending balance of retained farining = $52 500 DR S34.000 48,000 21,000 6,000 4,000 31,000 Account Cash Accounts receivable Drafting supplies Prepaid insurance Prepaid rent Equipment Accumulated depreciation Accounts payable Salaries payable Unearned fees Long-term notes payable Common stock Retained earnings $4,000 7,000 2,000 5,000 0 50,000 76,000 $144,000 $144,000 Aerial had the following transactions during 2019 (not in date order): a. Aerial collected $72,000 on accounts receivable during the year. b. The company created architectural renderings for clients totaling $112.000 in fees earned. S70,000 was collected in cash, with the remainder on account. c. Aerial purchased $70,000 worth of supplies during the year. $20,000 was paid in cash and the remainder was purchased on account. Record the purchase in the Supplies Expense account d. The company paid $47,000 on accounts payable during the year. e. On August 1 Aerial paid its $24,000 annual insurance premium. Record this payment as Prepaid Insurance.

Answer 1

Date	Accounts Titles	Debit	Credit
a.	Cash	72,000
	Accounts Receivable		72,000
	(To record cash collection on account)
b.	Cash	70,000
	Accounts Receivable	42,000
	Fees Earned		112,000
	(To record fees earned)
c.	Supplies Expense	70,000
	Cash		20,000
	Accounts Payable		50,000
	(To record supplies expense)
d.	Accounts Payable	47,000
	Cash		47,000
	(To record paid to accounts payable)
e.	Prepaid Insurance	24,000
	Cash		24,000
	(To record payment as prepaid insurance)
f.	Rent Expense	18,000
	Cash		18,000
	(To record payment of rent expense)
g.	Salaries Payable	41,000
	Cash		41,000
	(To record payment of salaries payable)
h.	Equipment	30,000
	Cash		5,000
	Note Payable		25,000
	(To record purchase of computer design system)
i.	Dividend	4,000
	Cash		4,000
	(To record payment of cash dividends)