Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Aracel Engineering completed the following transactions in the

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $200,000 cash, office equipment with a value of $8,900, and $76,000 of drafting equipment to launch the company. b. The company purchased land worth $56,000 for an office by paying $9,900 cash and signing a long-term note payable for $46,100. c. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. d. The company paid $3,100 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 $8,000 cash. f. The company purchased $21,000 of additional drafting equipment by paying $10,700 cash and signing a long-term note payable for $10,300. g. The company completed $15,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,700 of additional office equipment on credit. i. The company completed engineering services for $26,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,598 rent cost must be paid within 30 days. k. The company collected $8,000 cash in partial payment from the client described in transaction g. 1. The company paid $1,900 cash for wages to a drafting assistant m. The company paid $1,700 cash to settle the account payable created in transaction h. n. The company paid $1,115 cash for minor maintenance of its drafting equipment. o. Jenna Aracel withdrew $10,590 cash from the company for personal use. p. The company paid $1,600 cash for wages to a drafting assistant. q. The company paid $3,900 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 (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. Journal entry worksheet

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

Financial Accounting

Authors: Robert Libby

1st Canadian Edition

0070891737, 978-0070891739

More Books

Students also viewed these Accounting questions