Aracel Engineering completed the following transactions in the month of June. a.
ID: 2328754 • Letter: A
Question
Aracel Engineering completed the following transactions in the month of June.a.Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $7,600, and $73,000 of drafting equipment to launch the company in exchange for common stock. b.The company purchased land worth $60,000 for an office by paying $6,400 cash and signing a long-term note payable for $53,600. c.The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. d.The company paid $3,300 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 $7,700 cash. f.The company purchased $22,000 of additional drafting equipment by paying $10,700 cash and signing a long-term note payable for $11,300. g.The company completed $18,500 of engineering 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 engineering services for $26,000 on credit. j.The company received a bill for rent of equipment that was used on a recently completed job. The $1,501 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 $2,200 cash for wages to a drafting assistant. m.The company paid $1,050 cash to settle the account payable created in transaction h. n.The company paid $1,155 cash for minor maintenance of its drafting equipment. o.The company paid $9,560 cash in dividends. p.The company paid $2,200 cash for wages to a drafting assistant. q.The company paid $4,100 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.
Aracel Engineering completed the following transactions in the month of June.
a.Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $7,600, and $73,000 of drafting equipment to launch the company in exchange for common stock. b.The company purchased land worth $60,000 for an office by paying $6,400 cash and signing a long-term note payable for $53,600. c.The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. d.The company paid $3,300 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 $7,700 cash. f.The company purchased $22,000 of additional drafting equipment by paying $10,700 cash and signing a long-term note payable for $11,300. g.The company completed $18,500 of engineering 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 engineering services for $26,000 on credit. j.The company received a bill for rent of equipment that was used on a recently completed job. The $1,501 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 $2,200 cash for wages to a drafting assistant. m.The company paid $1,050 cash to settle the account payable created in transaction h. n.The company paid $1,155 cash for minor maintenance of its drafting equipment. o.The company paid $9,560 cash in dividends. p.The company paid $2,200 cash for wages to a drafting assistant. q.The company paid $4,100 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.
Aracel Engineering completed the following transactions in the month of June.
a.Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $7,600, and $73,000 of drafting equipment to launch the company in exchange for common stock. b.The company purchased land worth $60,000 for an office by paying $6,400 cash and signing a long-term note payable for $53,600. c.The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. d.The company paid $3,300 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 $7,700 cash. f.The company purchased $22,000 of additional drafting equipment by paying $10,700 cash and signing a long-term note payable for $11,300. g.The company completed $18,500 of engineering 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 engineering services for $26,000 on credit. j.The company received a bill for rent of equipment that was used on a recently completed job. The $1,501 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 $2,200 cash for wages to a drafting assistant. m.The company paid $1,050 cash to settle the account payable created in transaction h. n.The company paid $1,155 cash for minor maintenance of its drafting equipment. o.The company paid $9,560 cash in dividends. p.The company paid $2,200 cash for wages to a drafting assistant. q.The company paid $4,100 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.
Explanation / Answer
Journal Entries in $ Sl Account head Code Entry Debit Credit a cash 101 cash 170000 common stock 307 common stock 170000 office equipment 163 office equipment 7600 cash 101 cash 7600 drafting equipment 164 drafting equipment 73000 cash 101 cash 73000 b land 172 land 60000 cash 101 cash 6400 notes payable 250 notes payable 53600 c building 170 building 58000 cash 101 cash 58000 d insurance exp insurance 2200 prepaid insurance 108 prepaid insurance 1100 cash 101 cash 3300 e cash 101 cash 7700 engineering fee earned 402 engineering fee earned 7700 f drafting equipment 164 drafting equipment 22000 cash 101 cash 10700 notes payable 250 notes payable 11300 g accounts receivable 106 accounts receivable 18500 engineering fee earned 402 engineering fee earned 18500 h office equipment 163 office equipment 1050 accounts payable 201 accounts payable 1050 i accounts receivable 106 accounts receivable 26000 engineering fee earned 402 engineering fee earned 26000 j equipment rental expense 602 equipment rental expense 1501 accounts payable 201 accounts payable 1501 k cash 101 cash 8000 accounts receivable 106 accounts receivable 8000 l wages expenses 601 wages expenses 2200 cash 101 cash 2200 m accounts payable 201 accounts payable 1050 cash 101 cash 1050 n repairs expense 604 repairs expense 1155 cash 101 cash 1155 o dividends 319 dividends 9560 cash 101 cash 9560 p wages expenses 601 wages expenses 2200 cash 101 cash 2200 q advertising expense 603 advertising expense 4100 cash 101 cash 4100 Trial Balance In $ Account Head Code Debit Credit cash 101 6,435 accounts receivable 106 36,500 prepaid insurance 108 1,100 office equipment 163 8,650 drafting equipment 164 95,000 building 170 58,000 land 172 60,000 accounts payable 201 1,501 notes payable 250 64,900 common stock 307 170,000 dividends 319 9,560 engineering fee earned 402 52,200 wages expenses 601 4,400 equipment rental expense 602 1,501 advertising expense 603 4,100 repairs expense 604 3,355 Total 288,601 288,601
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