Return to question Aracel Engineering completed the following transactions in the month of June. Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements. Jun. 1 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 in exchange for common stock. Jun. 2 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. Jun. 3 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2. Jun. 4 The company paid $3,000 cash for the premium on an 18-month insurance policy. Jun. 5 The company completed and delivered a set of plans for a client and collected $6,200 cash. Jun. 6 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500. Jun. 7 The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. Jun. 8 The company purchased $1,150 of additional office equipment on credit. Jun. 9 The company completed engineering services for $22,000 on credit. Jun. 10 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. Jun. 12 The company collected $7,000 cash in partial payment from the client billed on June 9. Jun. 14 The company paid $1,200 cash for wages to a drafting assistant. Jun. 17 The company paid $1,150 cash to settle the account payable created in on June 8. Jun. 20 The company paid $925 cash for minor maintenance of its drafting equipment. Jun. 23 The company paid $9,480 cash in dividends. Jun. 28 The company paid $1,200 cash for wages to a drafting assistant. Jun. 29 The company paid $2,500 cash for advertisements on the web during June. ARACEL ENGINEERING Income Statement For Month Ended June 30, 2018 Revenues: Notes payable 53,200 Engineering fees earned 42,200 Total revenues $ 95,400 Expenses: Dividends Repairs expense Advertising expense Equipment rental expense Wages expense Total expenses Net income 433333 9,480 925 2,500 1,333 2,400 16,638 78,762 7 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Imp- Eq Using the dropdown buttons, select the item that accurately describes the values that either increase retained earnings. 1.25 points ARACEL ENGINEERING Statement of Retained Earnings For Month Ended June 30, 2018 Retained earnings, June 1, 2018 Add: Net income 0 35,042 35,042 35,042 Less: Dividends 9,480 Expenses Retained earnings, June 30, 2018 9,480 $ 25,562 12 7 Assets: ts Office equipment Drafting equipment Building Land Cash Accounts receivable Balance Sheet June 30, 2018 Prepaid insurance No journal entry required Total assets Liabilities: Accounts payable Notes payable No journal entry required 4444433 6,150 80,000 55,000 49,000 22,945 29,000 3,000 4h 4 1,333 53,200 $ 245,095