Problem 2-10A Journalizing, posting, preparing a trial balance LO345.6 CHECK FIG
ID: 2391295 • Letter: P
Question
Problem 2-10A Journalizing, posting, preparing a trial balance LO345.6 CHECK FIGURE: 4. Total Dr $658,740 Binbutti Engineering, a sole proprietorship, completed the following transactions during July 2017, the third month of operations: July 1 Bishr Binbutti, the owner, invested $300.000 cash, office equipment with a value of $12.000, and $90.000 of drafting oquipment in the business 2 Purchasod land for an otfice. Tho land was worth $108.000, which was paid with $10,800 cash and a longtom note payable for $97.200 3 Purchased a portable building with $150,000 cash and moved it onto the land 5 Paid $12.000 cash for the premiums on two one year insurance policies 7 Completed and delivered a set of plans for a client and collected $1.400 cash q Prchased additional drafting equipment for S45.000. Paid $21.000 cash ad sgned a longsom noto?ablo for the $24.000 balance. 10 Completed $4,000 of engineering services for a client. This amount is to be paid within 30 days. 12 Purchased $4.500 of additional office equipment on credit 15 Completed engineering services for $7,000 on credit 16 Received a bill for rent on equipment that was used on a completed job. The $13,800 rent must be paid within 30 days. 17 Collected $400 from the client of July 10. 1q Paid $12.000 wagas to the drafting assistants. 22 Paid the account payable created on Juy 12 25 Paid $1.350 cash for some repairs to an item of drafting equipment 26 Binbutti withdrew $800 cash from the business for personal use. 30 Paid $12.000 wages to the drafting assistants. 31 Paid $6.000 cash for advertising in the local newspaper duing Juiu Click here for a description of List: Problem 2-10A Required 1. Prepare journal entries to record the transactions. Use page 1 for the joumal 2. Set up the following general ledger accounts (use the balance column format or T-accounts). entering the balances brought forward from June 30, 2017: Cash (101) $26,000: Accounts Receivable (106) $3,000; Prepaid Insurance (128) $500: Office Equipment (163) $1.700; Drafting Equipment (167) $1,200; Building (173) $42,000; Land (183) $28,000; Accounts Payable (201) $1,740; Long-Term Notes Payable (251) $24,000; Bishr Binbutti, Capital (301) $54,000; Bishr Binbutti, Withdrawals (302) $1,000; Engineering Revenue (401) $29.600: Wages Expense (623) $4,000; Equipment Rental Expense (645) $1,000; Advertising Expense (655) $640; and Repairs Expense (684) $300. 3. Post the entries to the general ledger accounts and enter the balance after each posting. 4. Prepare a trial balance at July 31, 2017Explanation / Answer
Answer:
Answer 1 - Preparing Journal Entries
Answer 2 - Setting up T accounts
Date (2017) General Journal Debit ($) Credit($) 1-Jul Cash 300,000 Office equipment 12,000 Drafting equipment 90,000 Bishr Binbutti, Capital A/c 402,000 2-Jul Land 108,000 Cash 10,800 Notes Payable 97,200 3-Jul Buildings 150,000 Cash 150,000 5-Jul Prepaid Insurance 12,000 cash 12,000 7-Jul Cash 1,400 Engineering fees earned 1,400 9-Jul Drafting equipment 45,000 Cash 21,000 Notes Payable 24,000 10-Jul Accounts Receivable 4,000 Engineering fees earned 4,000 12-Jul Office Equipment 4,500 Accounts Payable 4,500 15-Jul Accounts Receivable 7,000 Engineering fees earned 7,000 16-Jul Equipment Rental Expense 13,800 Accounts Payable 13,800 17-Jul Cash 400 Accounts Receivable 400 19-Jul Wages Expense 12,000 Cash 12,000 22-Jul Accounts Payable 4,500 Cash 4,500 25-Jul Repairs Expense 1,350 Cash 1,350 26-Jul Drawings 800 Cash 800 30-Jul Wages Expense 12,000 Cash 12,000 31-Jul Advertising Expense 6,000 Cash 6,000Related Questions
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