Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company, b.

image text in transcribed
a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company, b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42,700. c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b. d. The company paid $3,000 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 $6,200 cash. f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500. g. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1150 of additional office equipment on credit. 1. The company completed engineering services for $22,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days. k. The company collected $7,000 cash in partial payment from the client described in transaction g. 1. The company paid $1,200 cash for wages to a drafting assistant. m. The company paid $1,150 cash to settle the account payable created in transaction h. n. The company paid $925 cash for minor maintenance of its drafting equipment. o. Jenna Aracel withdrew $9,480 cash from the company for personal use. p. The company paid $1,200 cash for wages to a drafting assistant 4. The company paid $2,500 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 Equipment (164), Building (170); Land (172); Accounts Payable (201): Notes Payable (250): J. Aracel, Capital (301): J. Aracel, Withdrawals (302); Engineering Fees Earned (402): Wages Expense (601): 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

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

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions

Question

1. Write down two or three of your greatest strengths.

Answered: 1 week ago

Question

What roles have these individuals played in your life?

Answered: 1 week ago

Question

2. Write two or three of your greatest weaknesses.

Answered: 1 week ago