dogsubject-Accounting BookrintrencesPrepare a trial balance as of the end of June.ARACEL ENGINEERINGTrial BalanceJune 30CashAccounts receivablePrepaid insuranceOffice equipmentDrafting equipmentAccounts payableDividendsAdvertising expenseWages expenseNotes payableBuildingLandServices revenueRepairs expenseCommon stockTotals$Debit0 $< Required 2Credit0Required 3 ng gWINTIMITa. J. Aracel, the owner, invested $160,000 cash, office equipment with a value of $7,800, and $77,000 of drafting equipment to launchthe company in exchange for common stock.b. The company purchased land worth $53,000 for an office by paying $9,500 cash and signing a note payable for $43,500.c. The company purchased a portable building with $53,000 cash and moved it onto the land acquired in b.d. The company paid $2,600 cash for the premium on an 18-month insurance policy.e. The company provided services to a client and collected $6,900 cash.f. The company purchased $27,000 of additional drafting equipment by paying $9,100 cash and signing a note payable for $17,900,g. The company completed $14,000 of services for a client. This amount is to be received in 30 days.h. The company purchased $1,200 of additional office equipment on credit.i. The company completed $22,000 of services for a customer on credit.j. The company purchased $1,696 of TV advertising on credit.k. The company collected $8,000 cash in partial payment from the client described in transaction g.1. The company paid $2,100 cash for employee wages.m. The company paid $1,200 cash to settle the account payable created in transaction h.n. The company paid $910 cash for repairs.o. The company paid a $10,590 cash dividend.p. The company paid $1,900 cash for employee wages.q.The company paid $3,100 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); Common Stock (307); Dividends (319); Services Revenue (403); Wages Expense (601); 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.

Name: dogsubject-Accounting BookrintrencesPrepare a trial balance as of the
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Description: dogsubject-Accounting BookrintrencesPrepare a trial balance as of the end of June.ARACEL ENGINEERINGTrial BalanceJune 30CashAccounts receivablePrepaid insuranceOffice equipmentDrafting equipmentAccounts payableDividendsAdvertising expenseWages expens

Journal entries recording is to be termed as initial step in accounting cycle process. Under this,…

Business

Accounting

Book rint rences Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Cash Accounts receivable Prepaid insurance Office equipment Drafting equipment Accounts payable Dividends Advertising expense Wages expense Notes payable Building Land Services revenue Repairs expense Common stock Totals $ Debit 0 $ Required 2 Credit 0

Book rint rences Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Cash Accounts receivable Prepaid insurance Office equipment Drafting equipment Accounts payable Dividends Advertising expense Wages expense Notes payable Building Land Services revenue Repairs expense Common stock Totals $ Debit 0 $ Required 2 Credit 0

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?
Johnson, Incorporated, had the following transactions during the year: Purchased a building for $5,000,000 using a mortgage for financing Paid $2,000 for ordinary repair on a piece of equipment Sold product on account to customers for $1,500,600 Paid $20,000 cash to add a storage shed in the corner of an existing building Paid $360,000 in monthly salaries Paid $25,000 for routine maintenance on equipment Paid $110,000 for extraordinary repairs Depreciation expense recorded for the year is $15,000. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Johnsons balance sheet resulting from this years transactions? What amount did Johnson report on the income statement for expenses for the year?
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Declared and paid to shareholders, a dividend of $24,000. B. Issued common stock at par value for $12,000 cash. C. Sold a tract of land that had cost $10,000, for $16,000. D. Purchased a company truck, with a note payable of $38,000. E. Collected $8,000 from customer accounts receivable.
Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an agreement to sell the land for $375,000. In accordance with the sales agreenwnt, the buyer transferred $375,000 to Capstone’s bank account on February 20. How would elements of the accounting equation be affected by the sale?
For each of the following situations write the principle, assumption, or concept that justifies or explains what occurred. A. A landscaper received a customers order and cash prepayment to install sod at a house that would not be ready for installation until March of next year. The owner should record the revenue from the customer order in March of next year, not in December of this year. B. A company divides its income statements into four quarters for the year. C. Land is purchased for $205,000 cash; the land is reported on the balance sheet of the purchaser at $205,000. D. Brandys Flower Shop is forecasting its balance sheet for the next five years. E. When preparing financials for a company, the owner makes sure that the expense transactions are kept separate from expenses of the other company that he owns. F. A company records the expenses incurred to generate the revenues reported.
Which of the following transactions changes only the mix of assets and does not affect liabilities or stockholders’ equity? A. Borrowed $40,000 from First National Bank B. Purchased land for $50,000 cash C. Received $3,800 for fees earned D. Paid $4,000 for Office salaries
George Hoskin started his own business, Hoskin Hauling. The following transactions occurred in the first two weeks: A. George Hoskin contributed cash of $12,000 and a truck worth $10,000 to start the business. He received Common Stock in return. B. Paid two months rent in advance, $800. C. Agreed to do a hauling job for a price of $1,200. D. Performed the hauling job discussed in C. We will get paid later. E. Received payment of $600 on the hauling job done in D. F. Purchased gasoline on credit, $50. G. Performed another hauling job. Earned $750, was paid cash. Record the following transactions in T-accounts. Label each entry with the appropriate letter. Total the T-accounts when you are done.
Aracel Engineering completed the following transactions in the month of June.J. a) Aracel, the owner, invested $205,000 cash, office equipment with a value of $8,800, and $63,000 of drafting equipment to launch the company in exchange for common stock. b) The company purchased land worth $56,000 for an office by paying $9,600 cash and signing a note payable for $46,400. c) The company purchased a portable building with $57,000 cash and moved it onto the land acquired in b. d) The company paid $5,000 cash for the premium on an 18-month insurance policy. e)The company provided services to a client and collected $7,900 cash. f) The company purchased $33,000 of additional drafting equipment by paying $9,900 cash and signing a note payable for $23,100. g) The company completed $19,000 of services for a client. This amount is to be received in 30 days. h) The company purchased $1,950 of additional office equipment on credit. i) The company completed $27,000 of services for a customer on…
June 1 Sarah Walker, the owner, invested $112,000 cash, office equipment with a value of $8,000, and $66,000 of drafting equipment to launch the company in exchange for common stock. June 2 The company purchased land worth $52,000 for an office by paying $10,500 cash and signing a long-term note payable for $41,500. June 3 The company purchased a portable building with $52,000 cash and moved it onto the land acquired on June 2. June 4 The company paid $4,800 cash for the premium on an 18-month insurance policy. June 5 The company completed and delivered a set of plans for a client and collected $8,600 cash. June 6 The company purchased $23,600 of additional drafting equipment by paying $12,500 cash and signing a long-term note payable for $11,100. June 7 The company completed $18,800 of engineering services for a client. This amount is to be received in 30 days. June 8 The company purchased $1,450 of additional office equipment on credit. June 9 The company completed…
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. b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a longterm 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…
Liang Shue contributed $250,000 cash and land worth $500,000 to open his new business, Shue Consulting. Which of the following journal entries does Shue Consulting make to record this transaction? a. Cash Assets . . . . . . . . . . . . . 750,000 L. Shue, Capital . . . . . . . 750,000 b. L. Shue, Capital . . . . . . . . . 750,000 Assets . . . . . . . . . . . . . . . 750,000 c. Cash . . . . . . . . . . . . . . . . . . 250,000 Land . . . . . . . . . . . . . . . . . . 500,000 L. Shue, Capital . . . . . . . 750,000 d. L. Shue, Capital . . . . . . . . . 750,000 Cash . . . . . . . . . . . . . . . . 250,000 Land . . . . . . . . . . . . . . . . 500,000