Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. J. Aracel, the owner, Invested $160,000 cash, office equipment with a value of $7,800, and $77,000 of drafting equipment to launch the company in

image text in transcribed
image text in transcribed
a. J. Aracel, the owner, Invested $160,000 cash, office equipment with a value of $7,800, and $77,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $53,000 for an office by paying $9,500 cash and signing a note payabie for $43,500. c. The company purchased a portable building with $53.000 cash and moved it onto the land acquired in b. d. The company paid $2,600 cash for the premium on an 18 -month insurance policy. e. The company provided services to a client and collected $6,900 cash. f. The company purchased $27,000 of additional drafting equipment by paying $9,100 cash and signing a note payable for $17,900. 9. The company completed $14,000 of services for a client. This amount is to be received in 30 days. h. The company purchased $1,200 of additional office equipment on credit. 1. The company completed $22,000 of services for a customer on credit. 1. The company purchased $1,696 of TV advertising on credit. k. The company collected $8,000 cash in partial payment from the client described in transaction g. 1. The company paid $2,100 cash for employee wages. m. The company paid $1,200 cash to settle the account payable created in transaction h. n. The company pald $910 cash for repairs. o. The company paid a $10,590 cash dividend. p. The company paid $1,900 cash for employee wages. q. The company paid $3,100 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 Receivable (105): Prepaid insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Services Revenue (403); Wages Expense (601); Advertising Expense (603); and Repairs Experise (604). 2. Post the journal entries from part 1 to the iedger accounts. 3. Prepare a trial balance as of the end of June. Prepare a trial balance as of the end of June

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Concepts And Applications

Authors: K. Fred Skousen, James D. Stice, Earl Kay. Stice, W. Steve Albrecht

7th Edition

0538876255, 978-0538876254

More Books

Students also viewed these Accounting questions

Question

Explain the legal environments impact on labor relations. page 631

Answered: 1 week ago