Lancet Engineering completed the following transactions in the month of June.
a. Jenna Lancet, the owner, invested $195,000 cash, office equipment with a value of $8,200, and $80,000 of drafting equipment to launch the company.
b. The company purchased land worth $52,000 for an office by paying $8,900 cash and signing a longterm note payable for $43,100.
c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b.
d. The company paid $2,300 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 $6,600 cash.
f. The company purchased $24,000 of additional drafting equipment by paying $9,600 cash and signing a long-term note payable for $14,400.
g. The company completed $14,500 of engineering services for a client. This amount is to be received in 30 days.
h. The company purchased $1,100 of additional office equipment on credit.
i. The company completed engineering services for $23,000 on credit.
j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,410 rent cost must be paid within 30 days.
k. The company collected $8,000 cash in partial payment from the client described in transaction g.
l. The company paid $2,500 cash for wages to a drafting assistant.
m. The company paid $1,100 cash to settle the account payable created in transaction h.
n. The company paid $970 cash for minor maintenance of its drafting equipment.
o. J. Lancet withdrew $10,450 cash from the company for personal use.
p. The company paid $2,000 cash for wages to a drafting assistant.
q. The company paid $2,400 cash for advertisements in the local newspaper during June.
Required
1. Prepare general journal entries to record these transactions (use the account titles listed in part 2).
2. Open the following ledger accounts—their account numbers are in parentheses (use the balance column format): 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. Lancet, Capital (301); J. Lancet,Withdrawals (302); Engineering Fees Earned (402); Wages
Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.
3. Prepare a trial balance as of the end of June.
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