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 $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 bn 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.
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 $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 bn 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 the
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 billed bn 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 $2,500 cash for advertisements on the web during June.
8 Answer is not complete.
St Retained
Earnings
Impact on
Equity
General
Income
Balance Sheet
General
Journal
Trial Balance
Statement
Requirement
Ledger
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Transcribed Image Text:X Answer Is not complete.
General
Journal
General
Income
Statement
St Retained
Earnings
Impact on
Equity
Requirement
Trial Balance
Balance Sheet
Ledger
Using the dropdown buttons, select the Item that accurately describes the values that either increase or decrease the
retained earnings.
ARACEL ENGINEERING
Statement of Retained Earnings
For Month Ended June 30, 2018
Retained earnings, June 1, 2018
2$
Add:
Expenses
Less:
Expenses
9,480
Net income
(22,945)
(13,465)
13,465
Retained earnings, June 30, 2018
Income Statement
Balance Sheet >
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