Question

a. Jenna Aracel, the owner, invested $235,000 cash, office equipment with a value of $5,200, and $64,000 of drafting equipment to launch the company in exchange for common stock b. The company purchased land worth $59,000 for an office by paying $8,500 cash and signing a long-term note payable for $50,500. c. The company purchased a portable building with $53,000 cash and moved it onto the land acquired in b. d. The company paid $3,500 cash for the premium on an 18-month Insurance policy. e. The company completed and delivered a set of plans for a client and collected $9.400 cash. f. The company purchased $31,000 of additional drafting equipment by paying $11,300 cash and signing a long-term note payable for $19,700. 9. The company completed $17,500 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,400 of additional office equipment on credit. 1. The company completed engineering services for $28,000 on credit. J. The company received a bill for rent of equipment that was used on a recently completed job. The $1,307 rent cost must be paid within 30 days. k. The company collected $10,000 cash in partial payment from the client described in transaction g. 1. The company paid $1,300 cash for wages to a drafting assistant. m. The company paid $1,400 cash to settle the account payable created in transaction h. n. The company paid $1,090 cash for minor maintenance of its drafting equipment. o. The company paid $9.950 cash in dividends. p. The company paid $2,400 cash for wages to a drafting assistant. 4. The company paid $3,500 cash for advertisements on the Web during June. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106): Prepa. Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172), Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319), Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of the end of June. Complete this question by entering your answers in the tabs below.

Answer 1

Journal Entries

Transact - A/c Title 101: Cash 163: Office Equipment 164: Drafting Equipment 307: Commom Stock - Debit - Credit - 235000 5200 64000 304200 59000 172: Land 101: Cash 250: Note Payable 8500 50500 170: Building 101: Cash 53000 53000 d 3500 108: Prepaid Insurance 101: Cash 3500 9400 101: Cash 402: Engineering Fee Earned 9400 31000 164: Drafting Equipment 101: Cash 250: Note Payable 11300 19700 17500 106: Accounts Recievable 402: Engineering Fee Earned 17500

h 1400 163: Office Equipment 201: Accounts Payable 1400 i 28000 106: Accounts Recievable 402: Engineering Fee Earned 28000 1307 602: Eqiupment Rental Expense 201:Accounts Payable 1307 10000 101: Cash 106: Accounts Recievable 10000 1300 601: Wages 101: Cash 1300 m 1400 201:Accounts Payable 101: Cash 1400 1300 604: Repairs Expense 101: Cash 1300 9950 319: Dividend 101: Cash 9950 601: Wages 101: Cash 2400 2400 9 1300 603: Advertisements 101: Cash 1300

2. Ledgers

101: Cash Transaction A/c Title 307: Commom Stock 172: Land 170: Building 108: Prepaid Insurance 402: Engineering Fee Earned 164: Drafting Equipment 106: Accounts Recievable 601: Wages 201:Accounts Payable 604: Repairs Expense 319: Dividend 601: Wages 603: Advertisements Total Debit Credit Balance 235000 235000 8500 226500 53000 173500 3500 170000 9400 179400 11300 168100 10000 178100 1300 176800 1400 175400 1300 174100 9950 164150 2400 161750 1300 160450 254400 93950

106: Accounts Recievable Transaction A/c Title 402: Engineering Fee Earned 402: Engineering Fee Earned 101: Cash Total Debit Credit Balance 17500 17500 28000 45500 10000 35500 45500 10000 35500 108: Prepaid Insurance Credit Transaction A/c Title d 101: Cash Total Debit 3500 3500 Balance 3500 3500 0 Credit 163: Office Equipment Transaction A/c Title 307: Commom Stock h 201: Accounts Payable Total Debit 5200 1400 6600 Balance 5200 6600 6600 0 164: Drafting Equipment Transaction A/c Title 307: Commom Stock 101: Cash 250: Note Payable Total Debit Credit 64000 11300 19700 95000 Balance 64000 75300 95000 0 95000

& so on for all other accounts

3. Trail Balance

Trail Balance at the end of June A/c Title Debit Credit 101: Cash 160450 163: Office Equipment 6600 164: Drafting Equipment 95000 307: Commom Stock 304200 172: Land 59000 250: Note Payable 70200 170: Building 53000 108: Prepaid Insurance 3500 402: Engineering Fee Earned 54900 106: Accounts Recievable 35500 201: Accounts Payable 1400 602: Eqiupment Rental Expense 1307 201:Accounts Payable 93 601: Wages 3700 604: Repairs Expense 1300 319: Dividend 9950 603: Advertisements 1300 Total 430700 430700!