a. Jenna Aracel, the owner, invested $185,000 cash, office equipment with a value of $5,300, and...

 

 

 

 

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a. Jenna Aracel, the owner, invested $185,000 cash, office equipment with a value of $5,300, and $71,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $49,000 for an office by paying $8,100 cash and signing a long-term note payable for $40,900. 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 $9,800 cash. f The company purchased $27,000 of additional drafting equipment by paying $10,100 cash and signing a long-term note payable for $16,900. g. The company completed $18,000 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. i. The company completed engineering services for $27,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,478 rent cost must be paid within 30 days. k. The company collected $9,000 cash in partial payment from the client described in transaction g. I. The company paid $2,300 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 $1,150 cash for minor maintenance of its drafting equipment. o. The company paid $10,130 cash in dividends. p. The company paid $2,100 cash for wages to a drafting assistant. q. The company paid $3,100 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); 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. Z 7 No Tranasaction 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 a b C d f 9 h i k 1 m n 0 P 9 Cash Office equipment Drafting equipment Land Cash Notes payable Building Cashi Prepaid insurance Cash Cash Engineering fees earned Drafting equipment Cash Notes payable Accounts receivable Engineering fees earned Office equipment Accounts payable Accounts receivable Engineering fees earned Account Title Equipment rental expense Accounts payable Cash Accounts receivable Wages expense Cash Accounts payable Cash Repairs expense Cash Dividends Cash Wages expense Cash Advertising expense Cash Debit 185,000 5.300 71,000 49,000 40,900 53,000 3,500 9.800 27,000 16,900 18.000 1.400 27,000 1,478 9,000 2.300 1,400 1,150 10,130 2,100 3.100 Credit 261,300 8,100 53,000 3,500 9,800 10,100 18,000 1,400 27,000 1,478 9,000 2,300 1,400 1,150 10,130 2,100 3,100 Post the journal entries from part 1 to the ledger accounts. 101: Cash Transaction Debit Transaction Debit 108: Prepaid Insurance Credit Transaction Debit Transaction 164: Drafting Equipment Credit Transaction Debit 172: Land Credit 250: Notes Payable Debit Credit Transaction Debit 319: Dividends Credit Transaction Debit 601: Wages Expense Credit Transaction. Debit Credit 603: Advertising Expense Credit Balance Balance Transaction Balance Transaction Transaction Balance Transaction Balance Transaction Balance Balance Balance 106: Accounts Receivable Debit Credit Balance Transaction 163: Office Equipment Debit Credit 170: Building Debit 201: Accounts Payable Debit Credit Balance 307: Common Stock Debit Credit 402: Engineering Fees Earned Debit Credit Transaction Debit Credit Balance Balance Transaction Debit 604: Repairs Expense Credit 602: Equipment Rental Expense Credit Balance Balance Balance Balance Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Totals 59 $ Debit 0 $ Credit 0 a. Jenna Aracel, the owner, invested $185,000 cash, office equipment with a value of $5,300, and $71,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $49,000 for an office by paying $8,100 cash and signing a long-term note payable for $40,900. 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 $9,800 cash. f The company purchased $27,000 of additional drafting equipment by paying $10,100 cash and signing a long-term note payable for $16,900. g. The company completed $18,000 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. i. The company completed engineering services for $27,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,478 rent cost must be paid within 30 days. k. The company collected $9,000 cash in partial payment from the client described in transaction g. I. The company paid $2,300 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 $1,150 cash for minor maintenance of its drafting equipment. o. The company paid $10,130 cash in dividends. p. The company paid $2,100 cash for wages to a drafting assistant. q. The company paid $3,100 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); 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. Z 7 No Tranasaction 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 a b C d f 9 h i k 1 m n 0 P 9 Cash Office equipment Drafting equipment Land Cash Notes payable Building Cashi Prepaid insurance Cash Cash Engineering fees earned Drafting equipment Cash Notes payable Accounts receivable Engineering fees earned Office equipment Accounts payable Accounts receivable Engineering fees earned Account Title Equipment rental expense Accounts payable Cash Accounts receivable Wages expense Cash Accounts payable Cash Repairs expense Cash Dividends Cash Wages expense Cash Advertising expense Cash Debit 185,000 5.300 71,000 49,000 40,900 53,000 3,500 9.800 27,000 16,900 18.000 1.400 27,000 1,478 9,000 2.300 1,400 1,150 10,130 2,100 3.100 Credit 261,300 8,100 53,000 3,500 9,800 10,100 18,000 1,400 27,000 1,478 9,000 2,300 1,400 1,150 10,130 2,100 3,100 Post the journal entries from part 1 to the ledger accounts. 101: Cash Transaction Debit Transaction Debit 108: Prepaid Insurance Credit Transaction Debit Transaction 164: Drafting Equipment Credit Transaction Debit 172: Land Credit 250: Notes Payable Debit Credit Transaction Debit 319: Dividends Credit Transaction Debit 601: Wages Expense Credit Transaction. Debit Credit 603: Advertising Expense Credit Balance Balance Transaction Balance Transaction Transaction Balance Transaction Balance Transaction Balance Balance Balance 106: Accounts Receivable Debit Credit Balance Transaction 163: Office Equipment Debit Credit 170: Building Debit 201: Accounts Payable Debit Credit Balance 307: Common Stock Debit Credit 402: Engineering Fees Earned Debit Credit Transaction Debit Credit Balance Balance Transaction Debit 604: Repairs Expense Credit 602: Equipment Rental Expense Credit Balance Balance Balance Balance Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Totals 59 $ Debit 0 $ Credit 0

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1 General Journal Entries a Jenna Aracel invested cash office equipment and drafting equipment in exchange for common stock Cash 101 185000 Office Equipment 163 5300 Drafting Equipment 164 71000 Commo... View the full answer