Question

Help Save & Exit Submit Submit Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $175,000 cash, office equipment with a value of $8.100, and $63,000 of drafting equipment to launch the company in exchange for common stock b. The company purchased land worth $58,000 for an office by paying $8,800 cash and signing a long-term note payable for $49.200 c. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. d. The company paid $2,200 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 $9.700 cash 1. The company purchased $34,000 of additional drafting equipment by paying $11,200 cash and signing a long-term note payable for $22.800 9. The company completed $19,000 of engineering services for a client. This amount is to be received in 30 days h. The company purchased $1500 of additional office equipment on credit. 1. The company completed engineering services for $21,000 on credit J. The company received a bill for rent of equipment that was used on a recently completed job. The $1,467 rent cost must be paid within 30 days k. The company collected $6,000 cash in partial payment from the client described in transaction 1. The company paid $1,300 cash for wages to a drafting assistant m. The company paid $1,500 cash to settle the account payable created in transaction n. The company paid $1005 cash for minor maintenance of its drafting equipment o. The company paid $10.770 cash in dividends. p. The company paid $1,300 cash for wages to a drafting assistant 4. The company paid $3,300 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): Prepaid Insurance (108) Office Equipment (163), Drafting Equipment (164) Building (170): Land (172): Accounts Payable (2011: 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.

Answer 1

D Credit Debit $1,75,000 $8,100 $63,000 $2,46,100 $58,000 $8,800 $49,200 $56,000 $56,000 А B 30 Date Account Titles and Explanation 31 a Cash 32 Office equipment 33 Drafting equipment 34 Common stock 35 36 b Land 37 Cash 38 Notes payable 39 40 с Building 41 Cash 42 43 d Prepaid insurance 44 Cash 45 46 e Cash 47 Engineering fees earned 48 49 f Drafting equipment 50 Cash 51 Notes payable 52 53 g Accounts receivable 54 Engineering fees earned 55 56 h Office equipment 57 Accounts payable $2,200 $2,200 $9,700 $9,700 $34,000 $11,200 $22,800 $19,000 $19,000 $1,500 $1,500

58 59 i $21,000 Accounts receivable Engineering fees earned 60 $21,000 61 j $1,467 62 63 Equipment rental expense Accounts payable $1,467 64 65 k $6,000 Cash Accounts receivable $6,000 66 67 68 1 $1,300 Wages expense Cash 69 $1,300 70 71 $1,500 Accounts payable Cash 72 $1,500 73 n $1,005 74 75 Repair expense Cash $1,005 76 77 0 $10,770 Dividends Cash $10,770 78 79 р $1,300 80 81 Wages expense Cash $1,300 82 83 q $3,300 Advertising expense Cash $3,300 84 85