Question

Aracel Engineering completed the following transactions in the month of June. 

a. 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 

b. 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. 

c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b 

d. The company paid $3,000 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 $6,200 cash 

f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500 

g. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. 

h. The company purchased $1,150 of additional office equipment on credit 

i. The company completed engineering services for $22,000 on credit. ). 

j.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 

k. The company collected $7,000 cash in partial payment from the client described in transaction g 

l. The company paid $1,200 cash for wages to a drafting assistant 

m. The company paid $1,150 cash to settle the account payable created in transaction 

n. The company paid $925 cash for minor maintenance of its drafting equipment 

o. The company paid a 59.480 cash dividend 

p. The company paid $1200 cash for wages to a drafting assistant 

q. The company paid $2,500 cash for advertisements on the Web during June ferences 

Required: 

1. Prepare general journal entries to record these transactions using the following titles: Cash (101Accounts Receivable (106] Prepaid Insurance (108) Ofice Equipment (163) Drafting Equipment (164) Building (1701. Land (172): Accounts Payable (201): Notes Payable (250). Common Stock (307), Dividends (319) Engineering Fees Earned (402) Wages Expense (601. Equipment Rental Expense (602) Advertising Expense (603), and Repairs Expense (604)

2. 2. Post the journal entries from part to the ledger accounts

3. 3. Prepare a trial balance as of the end of June Complete this question by entering your answers in the tabs below. 

Answer 1

Date Credit 4 5 a Account Title & Explanation Cash Office Equipment Drafting Equipment Common Stock (To record investment) Debit 100,000 5,000 60,000 165,000 49,000 11 b 12 Land Cash Notes Payable (To record purchase of Land) 6,300 42.700 13 14 15 55,000 16 17 18 19 20 d Building Cash (To record purchase of Building) 55,000 3,000 Prepaid Insurance Cash (To record purchase of Insurance Policy) 3,000 6,200 Cash Engineering Fees Earned (To record receipt of fees) 6,200

20,000 Drafting Equipment Cash Notes Payable (To record purchase of Drafting Equipment) 9,500 10,500 33 14,000 34 Accounts Receivable Engineering Fees Earned (To record receipt of fees) 14,000 35 36 1,150 Office Equipment Accounts Payable (To record purchase of Office Equipment) 1,150 39 22,000 Accounts Receivable Engineering Fees Earned (To record receipt of fees) 22,000 43 44 1,333 46 Equipment Rental Expense Accounts Payable (To record rent) 1,333 47 48 7,000 49 k 50 51 Cash Accounts Receivable (To record collection) 7,000

53 1,200 Wages Expense Cash (To record wages expese) 54 55 1,200 57 m 1,150 58 Accounts Payable Cash (To record payment of Accounts Payable) 1,150 59 61 925 Repairs Expense Cash (To record payment of repairs) 925 62 63 64 65 0 9,480 66 Dividends Cash (To record dividend paid) 9,480 67 68 1,200 69 p 70 71 Wages Expense Cash (To record wages expese) 1,200 739 2,500 Advertising Expense Cash (To record wages expese) 2,500

Ledger Accounts Cash Acct. #101 Date Item REF Credit Debit 100,000 6,300 55,000 3,000 6,200 9,500 Balance Debit Credit 100,000 93,700 38,700 35,700 41,900 32,400 39,400 38,200 37,050 36,125 26,645 25,445 22,945 7,000 1,200 1,150 925 9,480 1,200 2,500

Accounts Receivable Acct. #106 97 98 Date Item REF | Credit Credit Debit 14,000 22,000 Balance Debit 14,000 36,000 29,000 7,000 104 105 106 Prepaid Insurance Acct. #108 107 109 Date Item REF Credit Balance Debit 3,000.00 Debit 3,000.00 Credit 111 112 113 Office Equipment Acct. #163 115 116 117 Date Item REF Credit Balance Debit Credit 5,000 6,150 Debit 5,000 1,150 118 119

123 Drafting Equipment Acct. #164 126 Date Item REF Credit Debit 60,000 20,000 Balance Debit Credit 60,000 80,000 Building Acct. #170 133 Date Item REF Credit Debit 55,000 Balance Debit Credit 55,000 134 135 136 137 138 139 140 Land Acct. #172 142 Date Item REF Credit 143 144 145 146 Debit 49,000 Balance Debit Credit 49,000

Accounts Payable Acct. #201 153 Date Item REF Debit Credit 1,150 1,333 Balance Debit Credit 1,150 155 2,483 1,150 1,333 157 Notes Payable Acct. #250 Item REF Debit 162 Date 163 164 Credit 42,700 10,500 Balance Debit Credit 42,700 53,200 165 166 167 168 Common Stock 307.00 Date Item REF | Debit 170 171 172 Credit 165,000 Balance Debit Credit 165,000

Dividends Acct. #319 176 177 179 Date Item REF Credit Debit 9,480 Balance Debit Credit 9,480 181 182 183 184 185 Engineering Fees Earned Acct. #402 186 187 188 Date Item REF Debit 189 190 Credit 6,200 14,000 22,000 Balance Debit Credit 6,200 20,200 42,200 192 Wages Expese Acct. #601 194 Date Item REF Credit 196 197 Debit 1,200 1,200 Balance Debit Credit 1,200 2,400 198

202 Equipment Rental Expense Acct. #602 203 205 Date Item REF Credit Debit 1,333 Balance Debit Credit 1,333 208 Advertising Expense Acct. #603 212 213 Date Item REF Credit Balance Debit Credit 2,500 Debit 2,500 214 215 217 Repairs Expense Acct. #604 220 221 223 Date Item REF Debit 925 Credit Balance Debit Credit 925 225

227 228 229 231 232 234 235 237 Particulars Cash Accounts Receivable Prepaid Insurance Office Equipment Drafting Equipment Building Land Accounts Payable Notes Payable Common Stock Dividends Engineering fees earned Wages Expense Equipment Rental Expense Advertising Expense Repairs Expense Total Aracel Engineering Trial Balance 30-Jun Debit Credit 22,945 29,000 3,000.00 6,150 80,000 55,000 49,000 1333 53,200 165,000 9,480 42,200 2,400 1,333 2,500 925 261,733 261,733 239 240 241 242 243 244 245 246 247 248