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 Jenna Aracel, the owner, nvested $245,000 cash, office equipment with a value of $5,600, and $71,000 of drafing equipment to launch the company. b. The company purchased land worth $59,000 for an office by paying $9.000 cash and signing a long-term note payable for $50 c. The company purchased a portable building with $59,000 cash and moved it onto the land acquired in b. d. The company paid $3.000 cash for the premlum on an 18-month insurance policy e. The company completed and delivered a set of plans for a client and collected $6.200 cash. t. The company purchased $34,000 of addlnonal drafing equipment by paying $10.400 cash and signing a long-term note payable for $23,600. g. The company completed $15,500 of engineering services for a client. This amount is to be receved In 30 days h. The company purchased $1,400 of additional office equipment on credit L The company completed engineering services for $27000 on credit. J. The company recesved a bill for rent of equipment that was used on a recently completed job. The $1,437 rent cost must be paicd within 30 days. k. The company collected $9,000 cash in partial payment from the client described in transaction g. I. The company paid $1,500 cash for wages to a draftng assistant m. The company pald $1,400 cash to settle the account payable created in transaction h. n. The company paid $1,065 cash for minor maintenance of its drafting equipment o. Jenna Aracel withdrew $10,500 cash from the company for personal use P. The company paid $1,900 cash for wages to a drafting assistant q. The company pald $3,500 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 Recelvable (106 Prepaid Insurance (108); Office Equipment (163): Drafting Eaurpment (164): Building (170) Land (172: Accounts Payable (201; Notes Payable (250): J. Aracel, Capital (3on: J. Aracel, withdrawals (302). Engineering Fees Earned (402. wages expense (60% 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

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Cash    245,000.00 Office Equipment        5,600.00 Drafting Equipment      71,000.00 J. Aracel, Capital    321,600.00 (Record the Capital introduced by J Aracel) b. Land      59,000.00 Cash        9,000.00 Notes Payable      50,000.00 (Record the purchase of land) c. Building      59,000.00 Cash      59,000.00 (Record the purchase of Building) d. Prepaid Insurance        3,000.00 Cash        3,000.00 (Record the insurance paid) e. Cash        6,200.00 Engineering Fees Earned        6,200.00 (Record the fees earned) f. Drafting equipment      34,000.00 Cash      10,400.00 Notes Payable      23,600.00 (Record the drafting equipment purchased) g. Accounts Receivable      15,500.00 Engineering Fees Earned      15,500.00 (Record the fees earned) h. Office Equipment        1,400.00 Accounts Payable        1,400.00 (record the Office Equip. purchased) i. Accounts Receivable      27,000.00 Engineering Fees Earned      27,000.00 (Record the fees earned) j. Equipment Rental Expenses        1,437.00 Accounts Paybale        1,437.00 (Record the Equipment rent expenses) k. Cash        9,000.00 Accounts Receivable        9,000.00 (Record the cash collected) l. Wages Expenses        1,500.00 Cash        1,500.00 (Record the wages paid) m. Accounts Payable        1,400.00 Cash        1,400.00 (Record the cash paid) n. Repair Expenses        1,065.00 Cash        1,065.00 (Record the repair expenses) o. J Aracel, Withdrawl      10,500.00 Cash      10,500.00 (record the amount withdrawl) p. Wages Expenses        1,900.00 Cash        1,900.00 (record the wages paid) q. Advertsiment Expenses        3,500.00 Cash        3,500.00 (record the advertiment expenses) Answer 2. Cash Accounts Receivable Prepaid insurance Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount a.    245,000.00    245,000.00 g.    15,500.00    15,500.00 d.      3,000.00      3,000.00 b.        9,000.00    236,000.00 i.    27,000.00    42,500.00 c.      59,000.00    177,000.00 k.    9,000.00    33,500.00 d.        3,000.00    174,000.00 e.        6,200.00    180,200.00 f.      10,400.00    169,800.00 k.        9,000.00    178,800.00 l.        1,500.00    177,300.00 m.        1,400.00    175,900.00 n.        1,065.00    174,835.00 o.      10,500.00    164,335.00 p.        1,900.00    162,435.00 q.        3,500.00    158,935.00 Office Equipment Drafting Equipment Building Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount a.        5,600.00        5,600.00 a.    71,000.00    71,000.00 c.    59,000.00    59,000.00 h.        1,400.00        7,000.00 f.    34,000.00 ######### Land Accounts Payable Notes Payable Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount b.      59,000.00      59,000.00 h.    1,400.00      1,400.00 b.    50,000.00    50,000.00 j.    1,437.00      2,837.00 f.    23,600.00    73,600.00 m.      1,400.00      1,437.00 J. Aracel, Capital J. Aracel, Withdrawls Engineering Fees Earned Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount a.    321,600.00    321,600.00 o.    10,500.00    10,500.00 e.      6,200.00      6,200.00 g.    15,500.00    21,700.00 i.    27,000.00    48,700.00 Wages Expense Equipment Rental Expenses Advertising Expenses Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount l.        1,500.00        1,500.00 j.      1,437.00      1,437.00 q.      3,500.00      3,500.00 p.        1,900.00        3,400.00 Repairs Expenses Transaction Debit Credit Amount n.        1,065.00        1,065.00 Answer 3. ARACEL ENGINEERING Trial Balance June 30 Particulars Dr. Amt. Cr. Amt. Cash    158,935.00 Accounts Receivable      33,500.00 Prepaid insurance        3,000.00 Office Equipment        7,000.00 Drafting Equipment    105,000.00 Building      59,000.00 Land      59,000.00 Accounts Payable        1,437.00 Notes Payable      73,600.00 J. Aracel, Capital    321,600.00 J. Aracel, Withdrawls      10,500.00 Engineering Fees Earned      48,700.00 Wages Expense        3,400.00 Equipment Rental Expenses        1,437.00 Advertising Expenses        3,500.00 Repairs Expenses        1,065.00 Total    445,337.00    445,337.00

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.