Aracel Engineering completed the following transactions in the month of June. a.

Question

Aracel Engineering completed the following transactions in the month of June. a. To launch the company, Jenna Aracel, the owner, invested $245,000 cash, office equipment with a a. To launch the company, Jenna Aracel, the owner, invested $245.000 cash, office equipment value of $7,400, and $66,000 of drafting equipment in exchange for common stock b. The company purchased land worth $52,000 for an office by paying $6,200 cash and signing a long term note payable for $45,800. c. The company purchased a portable building with $54,000 cash and moved it onto the land acquired in b. d. The company paid $2,300 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 $21,000 of additional drafting equipment by paying $10,000 cash and signing a long-term note payable for $11,000. The company comleted $16,500 of engineering services for a client. This amount is to be received in 30 days. 9. The company completed $16,500 of engineering services for a client. This amount is to be received in h. The company purchased $1,300 of additional office equipment on credit. i. The company completed engineering services for $30,000 on credit The company recavied a onrorerent rinnt on a recenty completed job. The j The company received a bill for rent of equipment that was used on a recently completed job. The $1,692 rent cost must be paid within 30 days. k. The company collected $6,000 cash in partial payment from the client described in transaction g. I. The company paid $1,000 cash for wages to a drafting assistant. m. The company paid $1,300 cash to settle the account payable created in transaction h. n. The company paid $930 cash for minor maintenance of its drafting equipment o. The company paid $9,440 cash in dividends. p. The company paid $2,300 cash for wages to a drafting assistant. q. The company paid $3,100 cash for advertisements on the Web during June.

Explanation / Answer

No Accounts titles debit credit a. cash 245,000 office equipment 7,400 drafting equipment 66,000 to Common stock 318,400 b. land 52,000 cash 6,200 note payable 45,800 c Building 54,000 cash 54,000 d prepaid insurance 2,300 Cash 2,300 e cash 7,700 engineering fees earned 7,700 f Drafting equipment 21,000 Cash 10,000 notes payable 11,000 g. Accounts receivable 16,500 Engineering fees earned 16,500 h. Office Equipment 1,300 accounts payable 1,300 i. accounts receivable 30,000 Engineering fees earned 30,000 j. Engineering rental exp 1,692 accounts payable 1,692 k. cash 6,000 account receivable 6,000 l. wage expense 1,000 Cash 1,000 m. accounts paybale 1,300 cash 1,300 n. repair expense 930 cash 930 o dividends 9,440 Cash 9,440 p. wage expense 2,300 Cash 2,300 q. Advertising expense 3,100 Cash 3,100 cash Transaction debit credit balance a 245,000 245,000 b 6,200 238,800 c. 54,000 184,800 d. 2,300 182,500 e 7,700 190,200 f. 10,000 180,200 k. 6,000 186,200 l. 1,000 185,200 m. 1,300 183,900 n. 930 182,970 o. 9,440 173,530 p. 2,300 171,230 q. 3,100 168,130 Prepaid insurance TR Debit credit balance d 2,300 2,300 Engineering fees earned TR debit credit balance e. 7,700 7,700 g 16,500 24,200 i. 30,000 54,200 Account receivable TR debit Credit balance g 16,500 16,500 i 30,000 46,500 k 6,000 40,500 Wage expense TR Debit credit balance l. 1,000 1,000 p. 2,300 3,300 repair expense TR Debit credit balance n. 930 930 dividends TR Debit Credit balance o 9,440 9,440 office equipment tran debit credit balance a 7,400 7,400 h 1,300 8,700 Drafting equipment transc debit credit balance a 66,000 66,000 f 21,000 87,000 common stock TR debit credit balance a 318,400 318,400 land TR debit credit balance b 52,000 52,000 notes payable TR Debit Credit balance b 45,800 45,800 f 11,000 56,800 Building TR Debit credit balance c 54,000 54,000 Accounts payable TR Debit Credit balance h. 1,300 1,300 j 1,692 2,992 m 1,300 1,692 Enginerring rental expense TR Debit Credit balance j. 1,692 1,692 advertising expense TR Debit Credit balance q 3,100 3,100 Trial balance Debit Credit Cash 168,130 Prepaid insurance 2,300 Engineering fees 54,200 account receivable 40,500 wage expense 3,300 repair expense 930 dividends 9,440 office equipment 8,700 Drefting equipment 87,000 common stock 318,400 land 52,000 notes payable 56,800 building 54,000 accounts payable 1,692 engineering rental expense 1,692 advertising expense 3,100 total 431,092 431,092

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