1 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. 2 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. 3 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2. 4 The company paid $3,000 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 $6,200 cash. 6 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500. 7 The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days- 8 The company purchased $1,150 of additional office equipment on credit. 9 The company completed engineering services for $22,000 on credit. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. 10 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. Jun. 12 The company collected $7,000 cash in partial payment from the client billed on June 9. Jun. 14 The company paid $1,200 cash for wages to a drafting assistant. Jun. 17 The company paid $1,150 cash to settle the account payable created in on June 8. Jun. 20 The company paid $925 cash for minor maintenance of its drafting equipment. Jun. 23 The company paid $9,480 cash in dividends. Jun, 28 The company paid $1,200 cash for wages to a drafting assistant. Jun. 29 The company paid $2,500 cash for advertisements on the web during June.

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Chapter1: Financial Statements And Business Decisions
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GLO205 - Based on Problem 2-2A Aracel Engineering
Aracel Engineering completed the following transactions in the month of June.
Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on th
financial statements:
1 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.
2 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.
3 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2.
4 The company paid $3,000 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 $6,200 cash.
6 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term
note payable for $10,500.
7 The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.
8 The company purchased $1,150 of additional office equipment on credit.
9 The company completed engineering services for $22,000 on credit.
Jun.
Jun.
Jun.
Jun.
Jun.
Jun.
Jun.
Jun.
Jun.
Jun. 10 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.
Jun. 12 The company collected $7,000 cash in partial payment from the client biled on June 9.
Jun. 14 The company paid $1,200 cash for wages to a drafting assistant.
Jun. 17 The company paid $1,150 cash to settle the account payable created in on June 8.
Jun. 20 The company paid $925 cash for minor maintenance of its drafting equipment.
Jun. 23 The company paid $9,480 cash in dividends.
Jun, 28 The company paid $1,200 cash for wages to a drafting assistant.
Jun. 29 The company paid $2,500 cash for advertisements on the web during June.
X Answer is not complete.
General
Ledger
General
Income
Statement
St Retained
Earnings
Requirement
Impact on
Equity
Journal
Trial Balance
Balance Sheet
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Transcribed Image Text:GLO205 - Based on Problem 2-2A Aracel Engineering Aracel Engineering completed the following transactions in the month of June. Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on th financial statements: 1 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. 2 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. 3 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2. 4 The company paid $3,000 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 $6,200 cash. 6 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500. 7 The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. 8 The company purchased $1,150 of additional office equipment on credit. 9 The company completed engineering services for $22,000 on credit. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. 10 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. Jun. 12 The company collected $7,000 cash in partial payment from the client biled on June 9. Jun. 14 The company paid $1,200 cash for wages to a drafting assistant. Jun. 17 The company paid $1,150 cash to settle the account payable created in on June 8. Jun. 20 The company paid $925 cash for minor maintenance of its drafting equipment. Jun. 23 The company paid $9,480 cash in dividends. Jun, 28 The company paid $1,200 cash for wages to a drafting assistant. Jun. 29 The company paid $2,500 cash for advertisements on the web during June. X Answer is not complete. General Ledger General Income Statement St Retained Earnings Requirement Impact on Equity Journal Trial Balance Balance Sheet < Prev 7 of 8 Next >
Journal
Ledger
Statement
Earnings
Equity
The Income statement reports the change In equity attributable to the operation of the business during a specific p
time. Using the dropdown buttons, select the financlal statement elements and account tltles to be Includ
Income statement. The account balances will automatically populate. Did the company report net income or net
the current month?
ARACEL ENGINEERING
Income Statement
For Month Ended June 30, 2018
Revenues:
Accounts receivable
29,000
Cash
22,945
Total liabilities and equity
2$
51,945
Expenses:
Accounts receivable
29,000
Cash
22,945
Cash
22,945
74,890
Total liabilitięs
24
(22,945)
< Trial Balance
St Retained Earnings >
Transcribed Image Text:Journal Ledger Statement Earnings Equity The Income statement reports the change In equity attributable to the operation of the business during a specific p time. Using the dropdown buttons, select the financlal statement elements and account tltles to be Includ Income statement. The account balances will automatically populate. Did the company report net income or net the current month? ARACEL ENGINEERING Income Statement For Month Ended June 30, 2018 Revenues: Accounts receivable 29,000 Cash 22,945 Total liabilities and equity 2$ 51,945 Expenses: Accounts receivable 29,000 Cash 22,945 Cash 22,945 74,890 Total liabilitięs 24 (22,945) < Trial Balance St Retained Earnings >
Expert Solution
Explanation -

Income Statement -

This statement shows the income earned and loss incurred by the organization in the financial year. It gives a summary of the revenue earned during the accounting period and Expenses incurred during the accounting year. It also shows the net profit or loss made by the organization.

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