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Help 3. Prepare a trial balance as of April 3U Aracel Engineering completed the

ID: 2331960 • Letter: H

Question

Help 3. Prepare a trial balance as of April 3U Aracel Engineering completed the following transactions in the month of June. Problem 2-2A a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and Preparing and pa journal entries; p $60,000 of drafting equipment to launch the company in exchange for common stock. trial balance C3 C4 A1 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 for $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 S1,150 of additional office equipment on credit. i. 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 g. l. The company paid $1,200 cash for wages to a drafting assistant. m. The company paid S1,150 cash to settle the account payable created in transaction h n. The company paid $925 cash for minor maintenance of its drafting equipment. o. The company paid $9,480 cash in dividends. 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 trensse sount titles listed in part 2) 2. Open the following ledger accounts--their acconat nobess ase it pareutheses (use the balance col- Check umn format): Cash (101); (163); Drafting Equipment (164); Building (170); Landel,.counta Payble (201); Notes Payable Accou (250); Common Stock (307); Dividends (319); Engineering ees Baned (402 Wages Expense (601); Accou Equipment Rental Expense (602); Advertising Ex journal entries from part I to the accounts and enter the balance ate each posting Accounts Receivable (10)erot08); Office Equipment balance pense (603)s and Repairs Expense (604). Post the 3. Prepare a trial balance as of the end of June. totals

Explanation / Answer

Ans- 1- Gneneral Journal Debit Credit a- Cash 100,000

Office Equipment 5,000

Drafting Equipment 60,000

Common Stock 165,000

b- Land 49,000

Cash 6,300

Notes Payable 42,700

c-Building 55,000

Cash 55,000 d- Prepaid Insurance 3,000

Cash 3,000

e- Cash 6,200  

Engineering Fees Earned 6,200

f- Drafting Equipment 20,000

Cash 9,500

Notes Payable 10,500

g- Accounts Receivable 14,000  

Engineering Fees Earned 14,000

h- Office Equipment 1,150

Accounts Payable 1,150

i- Accounts Receivable 22,000

Engineering Fees Earned 22,000

j- Equipment Rental Expense 1,333

Accounts Payable 1,333

k- Cash 7,000

Accounts Receivable 7,000

l- Wages Expense 1,200

Cash 1,200

m-Accounts Payable 1,150

Cash 1,150

n- Repair Expense 925

Cash 925

o- Dividends 9,480

Cash 9,480  

p- Wages Expense 1,200

Cash 1,200

q- Advertising Expense 2,500

Cash 2,500

  

2- General Ledger Account

Cash

Balance

38,700

Accounts Receivable

Prepaid Insurance

Office Equipment

Drafting Equipment

Building

Land

Accounts Payable

Long-Term Notes Payable

Common Stock

Dividends

Engineering Fees Earned

Wages Expense

Equipment Rental Expense

Advertising Expense

Repairs Expense

   ARACEL ENGINEERING

TRIAL BALANCE

JUNE 30

No. Date Debit Credit

Balance

101 a June 30 100,000 100,000 b 6,300 93,700 c 55,000

38,700

d 3,000 35,700 e 6,200 41,900 f 9,500 32,400 k 7000 39,400 l 1,200 38,200 m 1,150 37,050 n 925 36,125 o 9,480 26,645 p 1,200 25,445 q 2500 22,945