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 the financial statements. 1 Jenna Aracel, the owner, invested $iee, eee cash, office equipment with a value of $5,0ee, and $60,e00 of drafting equipnent to launch the company in exchange for common stock. 2 The company purchased land worth $49,eee for an office by paying $6, 300 cash and signing a long-tern 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 $3,00e cash for the premium on an 18-month insurance policy. S The company completed and delivered a set of plans for a client and collected $6,200 cash. 6 The company purchased S2@,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $1e,50. 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,eee on credit. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. 1e 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,eee 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 $1,15e cash to settle the account payable created in on June 8. Jun. 20 The company paid $925 cash for minor mantenance of its drafting equipment. Jun. 23 The company paid 59,480 cash in dividends. Jun. 28 The company paid S1,200 cash for wages to a drafting assistant. Jun. 29 The company paid $2,5ee cash for advertisements on the web during June. St Retained Earnings Impact on Equity Income General Journal General Ledger Requirement Trial Balance Balance Sheet Statement Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions, entering the debits before the credits. Each transaction is automatically posted to the General Ledger and the Trial Balance as soon as you click "Record Entry".

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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GLO205 Based on Problem 2-2A Aracel Englneering
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 the
financial statements.
1 Jenna Aracel, the owner, invested Siee, e0e cash, office equipment with a value of $5,8e0e, and $60,e00 of drafting equipment
to launch the company in exchange for common stock.
2 The company purchased land worth $49,eee 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 $3,00e 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 S9,500 cash and signing a long-term note payable
for $1e,50e.
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 $22,90e an credit.
Jun.
Dun.
Dun.
Jun.
Jun.
Jun.
Jun.
Jun.
Jun.
Jun. 1e 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, 800 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 mayntenance 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.
General
Journal
General
Ledger
Income
Statement
St Retained
Earnings
Impact on
Equity
Requirement
Trial Balance
Balance Sheet
Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions,
entering the debits before the credits. Each transaction is automatically posted to the General Ledger and the Trial Balance as soon
as you click "Record Entry".
Show less A
View transaction list
Journal entry worksheet
3
4
17
Jun. 4) The company paid $3,000 cash for the premium on an 18-month
insurance policy.
Transcribed Image Text:GLO205 Based on Problem 2-2A Aracel Englneering 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 the financial statements. 1 Jenna Aracel, the owner, invested Siee, e0e cash, office equipment with a value of $5,8e0e, and $60,e00 of drafting equipment to launch the company in exchange for common stock. 2 The company purchased land worth $49,eee 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 $3,00e 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 S9,500 cash and signing a long-term note payable for $1e,50e. 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 $22,90e an credit. Jun. Dun. Dun. Jun. Jun. Jun. Jun. Jun. Jun. Jun. 1e 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, 800 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 mayntenance 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. General Journal General Ledger Income Statement St Retained Earnings Impact on Equity Requirement Trial Balance Balance Sheet Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions, entering the debits before the credits. Each transaction is automatically posted to the General Ledger and the Trial Balance as soon as you click "Record Entry". Show less A View transaction list Journal entry worksheet 3 4 17 Jun. 4) The company paid $3,000 cash for the premium on an 18-month insurance policy.
Jun. 1e The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be
Vices +8r $22,000 on credit.
paid within 30 days.
Jun. 12 The company collected $7, eee 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.
General
Jounal
Requirement
General
Income
Statement
St Retained
Earnings
Trial Balance
Impact on
Equity
Ledger
Balance Sheet
Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions,
entering the debits before the credits. Each transaction is automatically posted to the General Ledger and the Trial Balance as soon
as you click "Record Entry".
Show less A
View transaction list
Journal entry worksheet
く
1
2 3
4
6
<.
8
17
Jun. 4) The company paid $3,000 cash for the premium on an 18-month
insurance policy.
Note: Enter debits before credits.
Date
Account Title
Debit
Credit
Jun 04
Record entry
Clear entry
View general journal
< Requirement
General Ledger >
Transcribed Image Text:Jun. 1e The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be Vices +8r $22,000 on credit. paid within 30 days. Jun. 12 The company collected $7, eee 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. General Jounal Requirement General Income Statement St Retained Earnings Trial Balance Impact on Equity Ledger Balance Sheet Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the transactions, entering the debits before the credits. Each transaction is automatically posted to the General Ledger and the Trial Balance as soon as you click "Record Entry". Show less A View transaction list Journal entry worksheet く 1 2 3 4 6 <. 8 17 Jun. 4) The company paid $3,000 cash for the premium on an 18-month insurance policy. Note: Enter debits before credits. Date Account Title Debit Credit Jun 04 Record entry Clear entry View general journal < Requirement General Ledger >
Expert Solution
Introduction :

The question says Aracel started a business by investing capital into it.

Capital Invested = Cash + Office equipment + Drafting equipment

Notes payable = Total cost of asset - Cash paid 

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