Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2-2A (Algo) Preparing and posting journal entries; preparing a trial balance LO A1, P1 Aracel Engineening completcd the following transactions in the month of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 2-2A (Algo) Preparing and posting journal entries; preparing a trial balance LO A1, P1 Aracel Engineening completcd the following transactions in the month of June: a. Aracet, the owner, invested $160,000 cash, office equipment with a value of $8,600, and $79,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $53,000 for an office by poying $6,300 cash and signing a note payable for $46700. c. The company purchased a portable bulling with $59,000 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 provided services to a client and collected 57,900 cash, f. The company purchased $31,000 of additional drafing equipment by paying $10,200 cash and signing a note payable for $20,800 9. The compary completed $18,000 of services for a client. This amount is to be received in 30 doys. h. The company purchased $1,700 of additional otfice equipment on credit. 1. The company completed $21,000 of services for a customer on credit. 1. The company purchased $1,317 of TV advertising on credit. k. The company colfected $9,000 cash in partial payment from the client described in transaction g. 1. The company paid $1,100 cash for employee woges m. The company paid $1,700 cash to settle the account payable created in transaction h. n. The company paid $1,090 cash for repairs a. The company paid a 510,940 cash dividend. p. The company paid $1,200 cash for employee wages. q. The compary poid 53,900 cash for advertisements on the Web during yune. Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (to1); Accounts Receivabie (106); Prepaid Insurance (108); Oftice Equipment (163), Dratting Equipment (164); Euilding (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 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. Prepare a trial balance as of the end of June. Post the joumal entries from part 1 to the ledger accounts. Required 1 Required 3>

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

Income Tax Planning

Authors: Thomas P. Langdon, E. Vance Grange, Michael A. Dalton

5th Edition

1936602075, 978-1936602070

More Books

Students also viewed these Accounting questions