Question

Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42.700 c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b. d. The company paid $3,000 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 $6,200 cash. f. The company purchased $20,000 of additional drafting equipment by paying $9.500 cash and signing a long-term note payable to $10.500. g. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1150 of additional office equipment on credit 1. The company completed engineering services for $22,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days. k. The company collected $7,000 cash in partial payment from the client described in transaction 9 1. The company paid $1.200 cash for wages to a drafting assistant m. The company paid $1,150 cash to settle the account payable created in transaction h. n. The company paid $925 cash for minor maintenance of its drafting equipment o. Jenna Aracel withdrew $9,480 cash from the company for personal use. p. The company paid $1.200 cash for wages to a drafting assistant q. The company paid $2,500 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): Prepaid Insurance (108): Office Equipment (163), Drafting Equipment (164); Building (170). Land (172); Accounts Payable (201): Notes Payable (250): J.AracelCapital (301): J. Aracel, Withdrawals (302): Engineering Fees Eamed (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

particules Engineering service fee Ant Particulars Cash Al Receivable Alc Receivable Ant 6200 14000 22000 42200 bal (2,200 Particulars Cash Bal 42,200 Account Payable Ant Panticular 1150 office Equipment 1133 Rent 2283 Datable Amt IISD 1133 2283 2020.09.15 09:07

Note payable Particulars I and Drafting Pipuipment Ant 42,700 loco Particulars 63200 2020.09.15 09:09

Debit Credit Dr Tournal Estries Particulars Cash ano Office Equipment to Drafting Equipment de 100,000 5000 60,000 165000 10 Capital are 49000 6300 42700 2. 55000 55000 Land ale TO Cash to Note payable Building are To cash Prepaid Insurance a pr 3 3000 pr 3000 Ą Dr 6200 5 Cash ac To Engineering feelsowice camaatalie stockholders early 2020.09.15 08:59

20,000 6. Drafting Equipment Y Dr 9500 10,500 14000 or 1150 cash Note payable 14000 Accoant Receivable are 7o Engineering Service Office Equipment at 1150 To Acoust payable Account Receivable ale 22000 To Engineering service 1333 Rent 4 Dr Account payable 57000 11 Cash of Dr To account Receivable or 9. 22000 1333 7000 2020.09.15 09:00

1200 USD 12. Wages are Dronta no 1200 TO Cash 1150 13. Account payable are or To Cash rended 925 Drafting equipment are or PO Cash ng 925 Jenna Arcel Drawings acor 9480 To cash 9480 Is 1200 16 1200 wages at br To cash Advertisement de Dr To cash 2500 17 O 2900 conrest Ratio Stockholders Equity Total leanlities and Dividend payet ble 74,804 current labelit 266662 2020.09.15 09:01

Cash AC 6300 Capital Engineering fee Ale Receivable 100.000 Land 6200 Building 55000 7000 Prepaid Insurance 3000 Drafting Equipment 9500 1200 Account Payable 150 Drafting Equipment 929 (2294 J. Arcel Drawings 94480 113200 Office Equipment 173200 wages, 2300 5000 1150 Capital Ale payable Balance Yd 6150 ELSD GISO Drafting Equipment 81925 Bal Capital Cash Nete guyable 60,000 9 300 L9500 89925 cash 2020.09.15 09:05
DlJournal entries,ledgers & TB

Debit Credit 22945 6150 80925 165000 Trial Balance Particulars Cash Office Equipment Drafting Equipment Capital Land Note payable Building Prepaid Insurance Engineering tee/service Account Receivable Alwant payable 49000 53,200 55000 2000 42,200 29000 (133 2020.09.15 08:57

1133 Rent Wages J. Arcel Drawings 2400 9480 2500 Adrestisement 261533 261583 TZS * Cheb 2020.09.15 08:58