Aracel Engineering completed the following transactions in the month of June. J. Aracel, the owner, invested $240,000 cash, office equipment with a value of $10,000, and $77,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $7,400 cash and signing a note payable for $45,600. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,900 cash for the premium on an 18-month insurance policy. The company provided services to a client and collected $8,700 cash. The company purchased $26,000 of additional drafting equipment by paying $10,500 cash and signing a note payable for $15,500. The company completed $17,500 of services for a client. This amount is to be received in 30 days. The company purchased $1,600 of additional office equipment on credit. The company completed $25,000 of services for a customer on credit. The company purchased $1,338 of TV advertising on credit. The company collected $6,000 cash in partial payment from the client described in transaction g. The company paid $1,500 cash for employee wages. The company paid $1,600 cash to settle the account payable created in transaction h. The company paid $1,040 cash for repairs. J. Aracel withdrew $10,990 cash from the company for personal use. The company paid $1,500 cash for employee wages. The company paid $4,100 cash for advertisements on the Web during June. Required: 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); Services Revenue (403); Wages Expense (601); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the ledger accounts. Prepare a trial balance as of the end of June.

Aracel Engineering completed the following transactions in the month of June. J. Aracel, the owner, invested $240,000 cash, office equipment with a value of $10,000, and $77,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $7,400 cash and signing a note payable for $45,600. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,900 cash for the premium on an 18-month insurance policy. The company provided services to a client and collected $8,700 cash. The company purchased $26,000 of additional drafting equipment by paying $10,500 cash and signing a note payable for $15,500. The company completed $17,500 of services for a client. This amount is to be received in 30 days. The company purchased $1,600 of additional office equipment on credit. The company completed $25,000 of services for a customer on credit. The company purchased $1,338 of TV advertising on credit. The company collected $6,000 cash in partial payment from the client described in transaction g. The company paid $1,500 cash for employee wages. The company paid $1,600 cash to settle the account payable created in transaction h. The company paid $1,040 cash for repairs. J. Aracel withdrew $10,990 cash from the company for personal use. The company paid $1,500 cash for employee wages. The company paid $4,100 cash for advertisements on the Web during June. Required: 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); Services Revenue (403); Wages Expense (601); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the ledger accounts. Prepare a trial balance as of the end of June.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required:

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); Services Revenue (403); Wages Expense (601); Advertising Expense (603); and Repairs Expense (604).
Post the journal entries from part 1 to the ledger accounts.
Prepare a trial balance as of the end of June.

Transaction
[b.
0.
Transaction
b.
Transaction
Transaction
Transaction
n.
Debit
172: Land
53,000
Credit
250: Notes Payable
Debit
Credit
45,600
302: J. Aracel, Withdrawals
Debit
Credit
10,990
601: Wages Expense
Debit
Credit
1,500
1,500
604: Repairs Expense
Debit
Credit
1,040
Balance
53,000
Balance
45,600
Balance
(10,990)
Balance
Balance
(1,040)
Transaction
h.
(1,500) j
(3,000)
Transaction
a.
Transaction
e.
Transaction
201: Accounts Payable
Debit
Credit
301: J. Aracel, Capital
Debit
Credit
240,000
1,600
25,000
1,338
403: Services Revenue
Debit
Credit
8,700
603: Advertising Expense
Debit
Credit
1,338
4,100
Balance
1,600
26,600
27,938
Balance
(240,000)
Balance
(8,700)
Balance
(1,338)
(5,438)

a.
b.
C.
d.
Transaction
e.
f.
m.
n.
0.
P.
9.
Transaction
d.
f.
Transaction
a.
Debit
101: Cash
240,000
8,700
6,000
2,900
Credit
77,000
26,000
7,400
56,000
2,900
108: Prepaid Insurance
Debit
Credit
172: Land
10,500
1,500
1,600
1,040
10,990
1,500
4,100
164: Drafting Equipment
Debit
Credit
Balance
240,000 9.
232,600 i.
176,600
173,700
182,400
171,900
177,900
176,400
174,800
173,760
162,770
161,270
157,170
Balance
2,900
Balance
Transaction
77,000
103,000
Transaction
a.
Th.
Transaction
C.
106: Accounts Receivable
Debit
Credit
17,500
25,000
163: Office Equipment
Debit
Credit
10,000
170: Building
Debit
56,000
1,600
Credit
201: Accounts Payable
Balance
17,500
42,500
Balance
10,000
8,400
Balance
56,000

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