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
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Can someone please help me check my work on this?

 

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

  1. 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.
  2. The company purchased land worth $53,000 for an office by paying $7,400 cash and signing a note payable for $45,600.
  3. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b.
  4. The company paid $2,900 cash for the premium on an 18-month insurance policy.
  5. The company provided services to a client and collected $8,700 cash.
  6. The company purchased $26,000 of additional drafting equipment by paying $10,500 cash and signing a note payable for $15,500.
  7. The company completed $17,500 of services for a client. This amount is to be received in 30 days.
  8. The company purchased $1,600 of additional office equipment on credit.
  9. The company completed $25,000 of services for a customer on credit.
  10. The company purchased $1,338 of TV advertising on credit.
  11. The company collected $6,000 cash in partial payment from the client described in transaction g.
  12. The company paid $1,500 cash for employee wages.
  13. The company paid $1,600 cash to settle the account payable created in transaction h.
  14. The company paid $1,040 cash for repairs.
  15. J. Aracel withdrew $10,990 cash from the company for personal use.
  16. The company paid $1,500 cash for employee wages.
  17. The company paid $4,100 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); J. Aracel, Capital (301); J. Aracel, Withdrawals (302); 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.

 

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)
Transcribed Image Text: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
Transcribed Image Text: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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