Aracel Engineering completed the following transactions in the month of June. a. J. Aracel, the owner,...
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Aracel Engineering completed the following transactions in the month of June. a. J. Aracel, the owner, invested $215,000 cash, office equipment with a value of $5,100, and $73,000 of drafting equipment to launch the company. b. The company purchased land worth $53,000 for an office by paying $10,000 cash and signing a note payable for $43,000. c. The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. d. The company paid $4,000 cash for the premium on an 18-month insurance policy. e. The company provided services to a client and collected $8,000 cash. f. The company purchased $32,000 of additional drafting equipment by paying $11,700 cash and signing a note payable for $20,300. g. The company completed $17,500 of services for a client. This amount is to be received in 30 days. h. The company purchased $1,050 of additional office equipment on credit. i. The company completed $28,000 of services for a customer on credit. j. The company purchased $1,426 of TV advertising on credit. k. The company collected $10,000 cash in partial payment from the client described in transaction g. 1. The company paid $2,200 cash for employee wages. m. The company paid $1,050 cash to settle the account payable created in transaction h n. The company paid $1,200 cash for repairs. o. J. Aracel withdrew $9,630 cash from the company for personal use. p. The company paid $1,900 cash for employee wages. q. The company paid $3,600 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. Aracel, Capital (301); J. Aracel, Withdrawals (302); Services Revenue (403); Wages Expense (601); 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. Aracel Engineering completed the following transactions in the month of June. a. J. Aracel, the owner, invested $215,000 cash, office equipment with a value of $5,100, and $73,000 of drafting equipment to launch the company. b. The company purchased land worth $53,000 for an office by paying $10,000 cash and signing a note payable for $43,000. c. The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. d. The company paid $4,000 cash for the premium on an 18-month insurance policy. e. The company provided services to a client and collected $8,000 cash. f. The company purchased $32,000 of additional drafting equipment by paying $11,700 cash and signing a note payable for $20,300. g. The company completed $17,500 of services for a client. This amount is to be received in 30 days. h. The company purchased $1,050 of additional office equipment on credit. i. The company completed $28,000 of services for a customer on credit. j. The company purchased $1,426 of TV advertising on credit. k. The company collected $10,000 cash in partial payment from the client described in transaction g. 1. The company paid $2,200 cash for employee wages. m. The company paid $1,050 cash to settle the account payable created in transaction h n. The company paid $1,200 cash for repairs. o. J. Aracel withdrew $9,630 cash from the company for personal use. p. The company paid $1,900 cash for employee wages. q. The company paid $3,600 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. Aracel, Capital (301); J. Aracel, Withdrawals (302); Services Revenue (403); Wages Expense (601); 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.
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Answer rating: 100% (QA)
1 General Journal Entries Date Account Debit Credit June 1 Cash 101 215000 Office Equipment 163 5100 ... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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