Saved He GLO304 - Extension of Problem 2-2A Aracel Engineering LO P1, P2, P3, P4, P5, P6 Jenna Aracel opened a business called Aracel Engineering and recorded the following transactions in its first month of operations. Jun. 1 Jenna Aracel, the owner, invested $100, eee cash, office equipment with a value of $5,eee, and $60,eee of drafting equipment to launch the company in exchange for common stock. Jun. 2 The company purchased land worth $49,eee for an office by paying $6,300 cash and signing a long-term note payable for $42,700. Jun. 2 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2. Jun. 2 The company paid $3,000 cash for the premium on a 18-month insurance policy. Jun. 7 The company completed and delivered a set of plans for a client and collected $6,200 cash. Jun. 12 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. 14 The company completed $14,eee of engineering services for a client. This amount is to be received in 30 days. Jun. 15 The company purchased $1,150 of additional office equipment on credit. Jun. 17 The company completed engineering services for $22,eee on credit. Jun. 18 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. 2e The company collected $7,eee cash in partial payment from the client billed on June 14. Jun. 21 The company paid $1,200 cash for wages to a drafting assistant. Jun. 23 The company paid $1,150 cash to settle the account payable created on June 15. Jun. 24 The company paid $925 cash for minor maintenance of its drafting equipment. Jun. 26 The company paid $9,480 cash in dividends. Jun. 28 The company paid $1,2ee cash for wages to a drafting assistant. Jun. 3e The company paid $2,5ee cash for advertisements on the web during June. Descriptions of items that require adjusting entries on June 30, follow. a) The company has completed, but not yet billed, $6,000 of engineering services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $150 salvage value, is $100 per month c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $2,000 salvage value, is $1,300 per month. d) Straight-line depreciation on the building, assuming a 25-year life and a $1,000 salvage value, is $180 per month e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1. f) Accrued interest on the long-term note payable is $75. g) The drafting assistant is paid $1,200 for a 5-day work week 2 days' wages have been incurred but are unpaid as of month-end. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income For transactions a-g, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click "record entry". Saved Descriptions of items that require adjusting entries on June 30, follow. a) The company has completed, but not yet billed, $6,000 of engineering services for a client b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $150 salvage value, is c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $2,000 salvage value d) Straight-line depreciation on the building, assuming a 25-year life and a $1,000 salvage value, is $180 e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1. f) Accrued interest on the long-term note payable is $75. 9) The drafting assistant is paid $1,200 for a 5-day work week. 2 days' wages have been incurred but are Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impacto Income For transactions a-g, review the unadjusted balance and prepare the adjusting entry necessary to correct revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger an as soon as you click "record entry". View transaction list Journal entry worksheet 6 7 > The company has completed, but not yet billed, $6,000 of engineering services for a client. Prepare the required adjusting entry, if any. Note: Enter debits before credits Date Account Title Debit Credit Jun 30 to search O i F3 DI F4 FS F6 Prtsen F7 Home Saved He GLO304 - Extension of Problem 2-2A Aracel Engineering LO P1, P2, P3, P4, P5, P6 Jenna Aracel opened a business called Aracel Engineering and recorded the following transactions in its first month of operations. Jun. 1 Jenna Aracel, the owner, invested $100, eee cash, office equipment with a value of $5,eee, and $60,eee of drafting equipment to launch the company in exchange for common stock. Jun. 2 The company purchased land worth $49,eee for an office by paying $6,300 cash and signing a long-term note payable for $42,700. Jun. 2 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2. Jun. 2 The company paid $3,000 cash for the premium on a 18-month insurance policy. Jun. 7 The company completed and delivered a set of plans for a client and collected $6,200 cash. Jun. 12 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. 14 The company completed $14,eee of engineering services for a client. This amount is to be received in 30 days. Jun. 15 The company purchased $1,150 of additional office equipment on credit. Jun. 17 The company completed engineering services for $22,eee on credit. Jun. 18 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. 2e The company collected $7,eee cash in partial payment from the client billed on June 14. Jun. 21 The company paid $1,200 cash for wages to a drafting assistant. Jun. 23 The company paid $1,150 cash to settle the account payable created on June 15. Jun. 24 The company paid $925 cash for minor maintenance of its drafting equipment. Jun. 26 The company paid $9,480 cash in dividends. Jun. 28 The company paid $1,2ee cash for wages to a drafting assistant. Jun. 3e The company paid $2,5ee cash for advertisements on the web during June. Descriptions of items that require adjusting entries on June 30, follow. a) The company has completed, but not yet billed, $6,000 of engineering services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $150 salvage value, is $100 per month c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $2,000 salvage value, is $1,300 per month. d) Straight-line depreciation on the building, assuming a 25-year life and a $1,000 salvage value, is $180 per month e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1. f) Accrued interest on the long-term note payable is $75. g) The drafting assistant is paid $1,200 for a 5-day work week 2 days' wages have been incurred but are unpaid as of month-end. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income For transactions a-g, review the unadjusted balance and prepare the adjusting entry necessary to correctly report the revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as soon as you click "record entry". Saved Descriptions of items that require adjusting entries on June 30, follow. a) The company has completed, but not yet billed, $6,000 of engineering services for a client b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $150 salvage value, is c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $2,000 salvage value d) Straight-line depreciation on the building, assuming a 25-year life and a $1,000 salvage value, is $180 e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1. f) Accrued interest on the long-term note payable is $75. 9) The drafting assistant is paid $1,200 for a 5-day work week. 2 days' wages have been incurred but are Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impacto Income For transactions a-g, review the unadjusted balance and prepare the adjusting entry necessary to correct revenue earned or the expense incurred. Each adjustment is posted automatically to the general ledger an as soon as you click "record entry". View transaction list Journal entry worksheet 6 7 > The company has completed, but not yet billed, $6,000 of engineering services for a client. Prepare the required adjusting entry, if any. Note: Enter debits before credits Date Account Title Debit Credit Jun 30 to search O i F3 DI F4 FS F6 Prtsen F7 Home