Jenna Aracel, the owner, invested $215,000 cash, office equipment with a value o
ID: 2379532 • Letter: J
Question
Jenna Aracel, the owner, invested $215,000 cash, office equipment with a value of $5,100, and $61,000 of drafting equipment to launch the company.
The company purchased land worth $50,000 for an office by paying $6,700 cash and signing a long-term note payable for $43,300.
The company purchased a portable building with $60,000 cash and moved it onto the land acquired in b.
The company completed and delivered a set of plans for a client and collected $9,500 cash.
The company purchased $33,000 of additional drafting equipment by paying $11,000 cash and signing a long-term note payable for $22,000.
The company completed $16,000 of engineering services for a client. This amount is to be received in 30 days.
The company received a bill for rent of equipment that was used on a recently completed job. The $1,686 rent cost must be paid within 30 days.
PLEASE COMPLETE ONLY THE TRIAL BALANCE ABOVE
Aracel Engineering completed the following transactions in the month of June. Prepare a trial balance as of the end of June. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Equity, Revenues and Expenses.)Explanation / Answer
a.
To launch the company, Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $9,400, and $73,000 of drafting equipment in exchange for common stock.
Dr Cash $170,000
Dr office equipment $9,400
Dr drafting equipment $73,000
Cr common stock 252,400
b.
The company purchased land worth $58,000 for an office by paying $8,800 cash and signing a long-term note payable for $49,200.
Dr Land $58,000
Cr Cash $8,800
Cr Note payable $49,200
c.
The company purchased a portable building with $57,000 cash and moved it onto the land acquired in b.
Dr portable building $57,000
Cr Cash $57,000
d. The company paid $4,400 cash for the premium on an 18-month insurance policy.
Dr Prepaid insurance $4,400
Cr Cash $4,400
e.
The company completed and delivered a set of plans for a client and collected $8,300 cash.
Dr Cash $8,300
Cr Fees earned $8,300
f.
The company purchased $29,000 of additional drafting equipment by paying $10,400 cash and signing a long-term note payable for $18,600.
Dr drafting equipment $29,000
Cr Cash $10,400
Cr Notes payable $18,600
g.
The company completed $13,500 of engineering services for a client. This amount is to be received in 30 days.
Dr Accounts receivable $13,500
Cr Fees earned $13,500
h. The company purchased $2,000 of additional office equipment on credit.
Dr office equipment $2,000
Cr Accounts payable $2,000
i. The company completed engineering services for $26,000 on credit.
Dr Accounts receivable $26,000
Cr Fees earned $26,000
j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,694 rent cost must be paid within 30 days.
Dr Equipment rental expense $1,694
Cr Accounts payable $1,694
k. The company collected $9,000 cash in partial payment from the client described in transaction g.
Dr Cash $9,000
Cr Accounts receivable $9,000
l. The company paid $1,200 cash for wages to a drafting assistant.
Dr Wages expense $1,200
Cr Cash $1,200
m. The company paid $2,000 cash to settle the account payable created in transaction h.
Dr Accounts payable $2,000
Cr Cash $2,000
n. The company paid $985 cash for minor maintenance of its drafting equipment.
Dr Repair and maintenance expense $985
Cr Cash $985
o. The company paid $10,000 cash in dividends.
Dr Dividends $10,000
Cr Cash $10,000
p. The company paid $1,700 cash for wages to a drafting assistant.
Dr Wages expense $1,700
Cr Cash $1,700
q. The company paid $2,600 cash for advertisements on the Web during June.
Dr Prepaid advertising $2,600 (assuming we're in May, otherwise if we're in June, debit advertising expense)
Cr Cash $2,600
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