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Book rint rences Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Cash Accounts receivable Prepaid insurance Office equipment Drafting equipment Accounts payable Dividends Advertising expense Wages expense Notes payable Building Land Services revenue Repairs expense Common stock Totals $ Debit 0 $ Required 2 Credit 0

Book rint rences Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Cash Accounts receivable Prepaid insurance Office equipment Drafting equipment Accounts payable Dividends Advertising expense Wages expense Notes payable Building Land Services revenue Repairs expense Common stock Totals $ Debit 0 $ Required 2 Credit 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Book rint rences Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Cash Accounts receivable Prepaid insurance Office equipment Drafting equipment Accounts payable Dividends Advertising expense Wages expense Notes payable Building Land Services revenue Repairs expense Common stock Totals $ Debit 0 $ < Required 2 Credit 0 Required 3
Transcribed Image Text:Book rint rences Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Cash Accounts receivable Prepaid insurance Office equipment Drafting equipment Accounts payable Dividends Advertising expense Wages expense Notes payable Building Land Services revenue Repairs expense Common stock Totals $ Debit 0 $ < Required 2 Credit 0 Required 3
ng g WINTIMIT a. J. Aracel, the owner, invested $160,000 cash, office equipment with a value of $7,800, and $77,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $53,000 for an office by paying $9,500 cash and signing a note payable for $43,500. c. The company purchased a portable building with $53,000 cash and moved it onto the land acquired in b. d. The company paid $2,600 cash for the premium on an 18-month insurance policy. e. The company provided services to a client and collected $6,900 cash. f. The company purchased $27,000 of additional drafting equipment by paying $9,100 cash and signing a note payable for $17,900, g. The company completed $14,000 of services for a client. This amount is to be received in 30 days. h. The company purchased $1,200 of additional office equipment on credit. i. The company completed $22,000 of services for a customer on credit. j. The company purchased $1,696 of TV advertising on credit. k. The company collected $8,000 cash in partial payment from the client described in transaction g. 1. The company paid $2,100 cash for employee wages. m. The company paid $1,200 cash to settle the account payable created in transaction h. n. The company paid $910 cash for repairs. o. The company paid a $10,590 cash dividend. p. The company paid $1,900 cash for employee wages. q. The company paid $3,100 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); Common Stock (307); Dividends (319); 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.
Transcribed Image Text:ng g WINTIMIT a. J. Aracel, the owner, invested $160,000 cash, office equipment with a value of $7,800, and $77,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $53,000 for an office by paying $9,500 cash and signing a note payable for $43,500. c. The company purchased a portable building with $53,000 cash and moved it onto the land acquired in b. d. The company paid $2,600 cash for the premium on an 18-month insurance policy. e. The company provided services to a client and collected $6,900 cash. f. The company purchased $27,000 of additional drafting equipment by paying $9,100 cash and signing a note payable for $17,900, g. The company completed $14,000 of services for a client. This amount is to be received in 30 days. h. The company purchased $1,200 of additional office equipment on credit. i. The company completed $22,000 of services for a customer on credit. j. The company purchased $1,696 of TV advertising on credit. k. The company collected $8,000 cash in partial payment from the client described in transaction g. 1. The company paid $2,100 cash for employee wages. m. The company paid $1,200 cash to settle the account payable created in transaction h. n. The company paid $910 cash for repairs. o. The company paid a $10,590 cash dividend. p. The company paid $1,900 cash for employee wages. q. The company paid $3,100 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); Common Stock (307); Dividends (319); 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.
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