Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Aracel Engineering completed the following transactions in the month of June. a. To launch the company, Jenna Aracel, the owner, invested $240,000 cash, office equipment

Aracel Engineering completed the following transactions in the month of June. a. To launch the company, Jenna Aracel, the owner, invested $240,000 cash, office equipment with a value of $6,900, and $60,000 of drafting equipment in exchange for common stock. b. The company purchased land worth $55,000 for an office by paying $8,200 cash and signing a long-term note payable for $46,800. c. The company purchased a portable building with $52,000 cash and moved it onto the land acquired in b. d. The company paid $3,900 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 $6,000 cash. f. The company purchased $34,000 of additional drafting equipment by paying $10,000 cash and signing a long-term note payable for $24,000. g. The company completed $16,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,300 of additional office equipment on credit. i. The company completed engineering services for $24,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,512 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. l. The company paid $2,100 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 $990 cash for minor maintenance of its drafting equipment. o. The company paid $9,840 cash in dividends. p. The company paid $1,400 cash for wages to a drafting assistant. q. The company paid $3,600 cash for advertisements on the Web during June.

Required: 1. Prepare general journal entries to record these transactions.

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

Recommended Textbook for

More Books

Students also viewed these Accounting questions