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Aracel Engineering completed the following transactions in the month of June. Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,500, and $62,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $8,800 cash and signing a long-term note payable for $44,200. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,200 cash for the premium on an 18-month insurance policy. The company completed and delivered a set of plans for a client and collected $9,700 cash. The company purchased $35,000 of additional drafting equipment by paying $10,300 cash and signing a long-term note payable for $24,700. The company completed $16,500 of engineering services for a client. This amount is to be received in 30 days. The company purchased $1,050 of additional office equipment on credit. The company completed engineering services for $28,000 on credit. The company received a bill for rent of equipment that was used on a recently completed job. The $1,604 rent cost must be paid within 30 days. The company collected $8,000 cash in partial payment from the client described in transaction g. The company paid $1,400 cash for wages to a drafting assistant. The company paid $1,050 cash to settle the account payable created in transaction h. The company paid $1,195 cash for minor maintenance of its drafting equipment. Jenna Aracel withdrew $9,600 cash from the company for personal use. The company paid $1,100 cash for wages to a drafting assistant. The company paid $3,200 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.

Aracel Engineering completed the following transactions in the month of June. Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,500, and $62,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $8,800 cash and signing a long-term note payable for $44,200. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,200 cash for the premium on an 18-month insurance policy. The company completed and delivered a set of plans for a client and collected $9,700 cash. The company purchased $35,000 of additional drafting equipment by paying $10,300 cash and signing a long-term note payable for $24,700. The company completed $16,500 of engineering services for a client. This amount is to be received in 30 days. The company purchased $1,050 of additional office equipment on credit. The company completed engineering services for $28,000 on credit. The company received a bill for rent of equipment that was used on a recently completed job. The $1,604 rent cost must be paid within 30 days. The company collected $8,000 cash in partial payment from the client described in transaction g. The company paid $1,400 cash for wages to a drafting assistant. The company paid $1,050 cash to settle the account payable created in transaction h. The company paid $1,195 cash for minor maintenance of its drafting equipment. Jenna Aracel withdrew $9,600 cash from the company for personal use. The company paid $1,100 cash for wages to a drafting assistant. The company paid $3,200 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.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter1: Accounting And The Financial Statements
Section: Chapter Questions
Problem 50E: Exercise 1-50 Statement of Cash Flows OBJECTIVE o Walters Inc. began operations on January I. 2019....
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Aracel Engineering completed the following transactions in the month of June.

  1. Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,500, and $62,000 of drafting equipment to launch the company.
  2. The company purchased land worth $53,000 for an office by paying $8,800 cash and signing a long-term note payable for $44,200.
  3. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b.
  4. The company paid $2,200 cash for the premium on an 18-month insurance policy.
  5. The company completed and delivered a set of plans for a client and collected $9,700 cash.
  6. The company purchased $35,000 of additional drafting equipment by paying $10,300 cash and signing a long-term note payable for $24,700.
  7. The company completed $16,500 of engineering services for a client. This amount is to be received in 30 days.
  8. The company purchased $1,050 of additional office equipment on credit.
  9. The company completed engineering services for $28,000 on credit.
  10. The company received a bill for rent of equipment that was used on a recently completed job. The $1,604 rent cost must be paid within 30 days.
  11. The company collected $8,000 cash in partial payment from the client described in transaction g.
  12. The company paid $1,400 cash for wages to a drafting assistant.
  13. The company paid $1,050 cash to settle the account payable created in transaction h.
  14. The company paid $1,195 cash for minor maintenance of its drafting equipment.
  15. Jenna Aracel withdrew $9,600 cash from the company for personal use.
  16. The company paid $1,100 cash for wages to a drafting assistant.
  17. The company paid $3,200 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.

Transaction Transaction Transaction Transaction Transaction 172: Land Debit Credit 250: Notes Payable Debit Credit 302: J. Aracel, Withdrawals Debit Credit 601: Wages Expense Debit Credit 603: Advertising Expense Debit Credit Balance Balance Balance Balance Balance Transaction Transaction Transaction Transaction Transaction < Required 1 201: Accounts Payable Debit Credit 301: J. Aracel, Capital Debit Credit 402: Engineering Fees Earned Debit Credit 602: Equipment Rental Expense Debit Credit 604: Repairs Expense Debit Credit Required 3 > Balance Balance Balance Balance Balance
Transcribed Image Text:Transaction Transaction Transaction Transaction Transaction 172: Land Debit Credit 250: Notes Payable Debit Credit 302: J. Aracel, Withdrawals Debit Credit 601: Wages Expense Debit Credit 603: Advertising Expense Debit Credit Balance Balance Balance Balance Balance Transaction Transaction Transaction Transaction Transaction < Required 1 201: Accounts Payable Debit Credit 301: J. Aracel, Capital Debit Credit 402: Engineering Fees Earned Debit Credit 602: Equipment Rental Expense Debit Credit 604: Repairs Expense Debit Credit Required 3 > Balance Balance Balance Balance Balance
Required 1 Required 2 Required 3 Post the journal entries from part 1 to the ledger accounts. 101: Cash Transaction Debit Credit Balance 108: Prepaid Insurance Debit Transaction Credit 164: Drafting Equipment Debit Transaction Credit 172: Land Transaction Transaction Debit Credit 250: Notes Payable Debit Credit Balance Balance Balance Balance Transaction Transaction Transaction Transaction Transaction 106: Accounts Receivable Debit Credit 163: Office Equipment Debit Credit 170: Building Debit Credit 201: Accounts Payable Debit Credit 301: J. Aracel, Capital Debit Credit Balance Balance Balance Balance Balance
Transcribed Image Text:Required 1 Required 2 Required 3 Post the journal entries from part 1 to the ledger accounts. 101: Cash Transaction Debit Credit Balance 108: Prepaid Insurance Debit Transaction Credit 164: Drafting Equipment Debit Transaction Credit 172: Land Transaction Transaction Debit Credit 250: Notes Payable Debit Credit Balance Balance Balance Balance Transaction Transaction Transaction Transaction Transaction 106: Accounts Receivable Debit Credit 163: Office Equipment Debit Credit 170: Building Debit Credit 201: Accounts Payable Debit Credit 301: J. Aracel, Capital Debit Credit Balance Balance Balance Balance Balance
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