CHAPTER 2 Analying and Recording Dansactions Binbutti Engineering, a sole proprietorship, completed the following transactions during July 2020, the Bob But, the owner invested $300,000 cash, oce equipment wen a value of $12.000, and $90,000 of Purchased and for an office. The land was worth $108,000, which was paid with $10.800 cash and a long-term Purchased additional drafting equipment for $45,000. Paid $21,000 cash and signed a long-term note payable ing (173) $42,000; Land (183) $28,000; Accounts Payable (201) $1,740; Long-Term Notes Payable (251) third month of operations Reg 2 1. 3 dating equipment in the business note payable for $97,200 Purchased a portable bulding with $150,000 cash and moved it onto the land. Paid $12,000 cash for the premiums on two one year insurance policies. completed and delivered a set of plans for a client and collected $1.400 cash. 2 5 7 enue (401) $29,600; Wages Expense (623) $4,000: Equipment Rental Expense (645) $1,000; Advertising Required 1. Prepare journal entries to record the transactions. Use page 1 for the journal. 2. Set up the following general ledger accounts (use the balance column format or T-accounts), entering the balances brought forward from June 30, 2020: Cash (101) $26,000; Accounts Receivable (106) $3,000, Prepaid Insurance (128) $500; Office Equipment (163) S1,700; Drafting Equipment (167) $1,200; Build $24,000; Bob Binbutti, Capital (301) $54,000; Bob Binbutti, Withdrawals (302) $1,000; Engineering Rev Expense (655) S640; and Repairs Expense (684) $300. 10 for the $24,000 balance Completed $4,000 of engineering services for a client. This amount is to be paid within 30 days. Purchased $4.500 of additional office equipment on credit Completed engineering services for $7,000 on credit Received a bill for rent on equipment that was used on a completed job. The $13,800 rent must be paid within 15 16 30 days 17 Collected $400 from the client of July 10 19 Paid $12,000 wages to the drafting assistants 22 Paid the account payable created on July 12 25 Paid $1,350 cash for some repairs to an item of drafting equipment 26 Binbutt withdrew $800 cash from the business for personal use. 30 Paid $12,000 wages to the drafting assistants 31 Paid $6.000 cash for advertising in the local newspaper during July 2. Post the entries to the general ledger accounts and enter the balance after each posting. 4. Prepare a trial balance at July 31, 2020. Problem 2-11A Preparing financial and