Home / Questions / Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2

Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2

Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2

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

  1. Jenna Aracel, the owner, invested $240,000 cash, office equipment with a value of $6,900, and $75,000 of drafting equipment to launch the company.
  2. The company purchased land worth $54,000 for an office by paying $7,400 cash and signing a long-term note payable for $46,600.
  3. The company purchased a portable building with $54,000 cash and moved it onto the land acquired in b.
  4. The company paid $2,400 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 $8,000 cash.
  6. The company purchased $32,000 of additional drafting equipment by paying $10,700 cash and signing a long-term note payable for $21,300.
  7. The company completed $17,500 of engineering services for a client. This amount is to be received in 30 days.
  8. The company purchased $1,900 of additional office equipment on credit.
  9. The company completed engineering services for $25,000 on credit.
  10. The company received a bill for rent of equipment that was used on a recently completed job. The $1,302 rent cost must be paid within 30 days.
  11. The company collected $9,000 cash in partial payment from the client described in transaction g.
  12. The company paid $1,200 cash for wages to a drafting assistant.
  13. The company paid $1,900 cash to settle the account payable created in transaction h.
  14. The company paid $995 cash for minor maintenance of its drafting equipment.
  15. Jenna Aracel withdrew $10,160 cash from the company for personal use.
  16. The company paid $1,700 cash for wages to a drafting assistant.
  17. The company paid $4,500 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 List:

  • 1

    Jenna Aracel, the owner, invested $240,000 cash, office equipment with a value of $6,900, and $75,000 of drafting equipment to launch the company.

  • 2

    The company purchased land worth $54,000 for an office by paying $7,400 cash and signing a long-term note payable for $46,600.

  • 3

    The company purchased a portable building with $54,000 cash and moved it onto the land acquired in b.

  • 4

    The company paid $2,400 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 $8,000 cash.

  • 6

    The company purchased $32,000 of additional drafting equipment by paying $10,700 cash and signing a long-term note payable for $21,300.

  • 7

    The company completed $17,500 of engineering services for a client. This amount is to be received in 30 days.

  • 8

    The company purchased $1,900 of additional office equipment on credit.

  • 9

    The company completed engineering services for $25,000 on credit.

  • 10

    The company received a bill for rent of equipment that was used on a recently completed job. The $1,302 rent cost must be paid within 30 days.

  • 11

    The company collected $9,000 cash in partial payment from the client described in transaction g.

  • 12

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

  • 13

    The company paid $1,900 cash to settle the account payable created in transaction h.

  • 14

    The company paid $995 cash for minor maintenance of its drafting equipment.

  • 15

    Jenna Aracel withdrew $10,160 cash from the company for personal use.

  • 16

    The company paid $1,700 cash for wages to a drafting assistant.

  • 17

    The company paid $4,500 cash for advertisements on the Web during June.

Pictures:

Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Aracel Engineering compleComplete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare general journal eComplete this question by entering your answers in the tabs below. Required Required Required 2 3 1 Post the journal entries601: Wages Expense 602: Equipment Rental Expense Debit Credit Balance Transaction Balance Transaction Debit Credit 603: AdverComplete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a trial balance aComplete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a trial balance a

Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $240,000 cash, office equipment with a value of $6,900, and $75,000 of drafting equipment to launch the company. b. The company purchased land worth $54,000 for an office by paying $7,400 cash and signing a long-term note payable for $46,600. c. The company purchased a portable building with $54,000 cash and moved it onto the land acquired in b. d. The company paid $2,400 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 $8,000 cash f. The company purchased $32,000 of additional drafting equipment by paying $10,700 cash and signing a long-term note payable for $21,300 g. The company completed $17,500 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,900 of additional office equipment on credit. i. The company completed engineering services for $25,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,302 rent cost must be paid within 30 days. k. The company collected $9,000 cash in partial payment from the client described in transaction g. The company paid $1,200 cash for wages to a drafting assistant m. The company paid $1,900 cash to settle the account payable created in transaction h. n. The company paid $995 cash for minor maintenance of its drafting equipment. o. Jenna Aracel withdrew $10,160 cash from the company for personal use. p. The company paid $1,700 cash for wages to a drafting assistant. q. The company paid $4,500 ca ments on the Web duri Jun for adverti 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. Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 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) Show less View transaction list Complete this question by entering your answers in the tabs below. Required Required Required 2 3 1 Post the journal entries from part 1 to the ledger accounts. 101: Cash 106: Accounts Receivable Transaction Debit Credit Balance Transaction Debit Credit Balance 163: Office Equipment 108: Prepaid Insurance Transaction Debit Credit Balance Transaction Debit Credit Balance 164: Drafting Equipment Credit 170: Building Transaction Debit Balance Transaction Debit Credit Balance 172: Land 201: Accounts Payable Transaction Debit Transaction Balance Credit Balance Debit Credit 301: J. Aracel, Capital 250: Notes Payable Transaction Debit Credit Balance Debit Credit Balance Transaction 302: J. Aracel, Withdrawals 402: Engineering Fees Earned Transaction Debit Transaction Debit Credit Balance Credit Balance 602: Equipment Rental Expense 601: Wages Expense Transaction Debit Credit Balance Transaction Debit Credit Balance 601: Wages Expense 602: Equipment Rental Expense Debit Credit Balance Transaction Balance Transaction Debit Credit 603: Advertising Expense 604: Repairs Expense Credit Transaction Debit Balance Transaction Debit Credit Balance Required 1 Required 3 Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Debit Credit $ 0 $ Totals KRequired 2 Required 3 Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Debit Credit $ 0 $ Totals KRequired 2 Required 3

Apr 04 2020 Read more Less More

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