Duerr 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. Jun. 1 Melanie Duerr, the owner, invested $150,000 cash, office equipment with a value of $17,500, and $85,000 of drafting equipment to launch the company. Jun. 2 The company purchased land worth $61,500 for an office by paying $23,800 cash and signing a long-term note payable for $37,700. Jun. 3 The company purchased a portable building with $42,500 cash and moved it onto the land acquired on June 2. Jun. 4 The company paid $10,500 cash for the premium on an 18-month insurance policy. Jun. 5 The company completed and delivered a set of plans for a client and collected $16,200 cash. Jun. 6 The company purchased $35,000 of additional drafting equipment by paying $22,000 cash and signing a long-term note payable for $13,000. Jun. 7 The company completed $34,000 of engineering services for a client. This amount is to be received in 30 days. Jun. 8 The company purchased $2,400 of additional office equipment on credit. Jun. 9 The company completed engineering services for $27,000 on credit. Jun. 10 The company received a bill for rent of equipment that was used on a recently completed job. The $2,550 rent cost must be paid within 30 days. Jun. 12 The company collected $17,000 cash in partial payment from the client billed on June 9. Jun. 14 The company paid $1,400 cash for wages to a drafting assistant. Jun. 17 The company paid $2,400 cash to settle the account payable created in on June 8. Jun. 20 The company paid $1,550 cash for minor maintenance of its drafting equipment. Jun. 23 Melanie Duerr withdrew $9,980 cash from the company for personal use. Jun. 28 The company paid $1,400 cash for wages to a drafting assistant. Jun. 29 The company paid $3,500 cash for advertisements on the web during June.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Duerr 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.
  

Jun.   1   Melanie Duerr, the owner, invested $150,000 cash, office equipment with a value of $17,500, and $85,000 of drafting equipment to launch the company.
Jun.   2   The company purchased land worth $61,500 for an office by paying $23,800 cash and signing a long-term note payable for $37,700.
Jun.   3   The company purchased a portable building with $42,500 cash and moved it onto the land acquired on June 2.
Jun.   4   The company paid $10,500 cash for the premium on an 18-month insurance policy.
Jun.   5   The company completed and delivered a set of plans for a client and collected $16,200 cash.
Jun.   6   The company purchased $35,000 of additional drafting equipment by paying $22,000 cash and signing a long-term note payable for $13,000.
Jun.   7   The company completed $34,000 of engineering services for a client. This amount is to be received in 30 days.
Jun.   8   The company purchased $2,400 of additional office equipment on credit.
Jun.   9   The company completed engineering services for $27,000 on credit.
Jun.   10   The company received a bill for rent of equipment that was used on a recently completed job. The $2,550 rent cost must be paid within 30 days.
Jun.   12   The company collected $17,000 cash in partial payment from the client billed on June 9.
Jun.   14   The company paid $1,400 cash for wages to a drafting assistant.
Jun.   17   The company paid $2,400 cash to settle the account payable created in on June 8.
Jun.   20   The company paid $1,550 cash for minor maintenance of its drafting equipment.
Jun.   23   Melanie Duerr withdrew $9,980 cash from the company for personal use.
Jun.   28   The company paid $1,400 cash for wages to a drafting assistant.
Jun.   29   The company paid $3,500 cash for advertisements on the web during June.

 

 
General
Requirement
General
Journal
Trial Balance
Income
Statement
St Owners
Equity
Balance Sheet
Impact on
Equity
Ledger
While the balance sheet reports the detail of individual assets and liabilities, owner's equity is reported in total. The expanded
accounting equation shows the four subsets of equity: Revenues, Expenses, Owner investments and Owner withdrawals. Using the
dropdown buttons, indicate the impact each transaction has on total equity (if any). Compare the total with the amount of
equity reported on the balance sheet.
Show less
Transaction
Impact on Equity
Melanie Duerr, the owner, invested $150,000 cash, office
equipment with a value of $17,500, and $85,000 of drafting
equipment to launch the company.
$
0
The company purchased land worth $61,500 for an office by
paying $23,800 cash and signing a long-term note payable
for $37,700.
0
The company purchased a portable building with $42,500
cash and moved it onto the land acquired on June 2.
0
The company paid $10,500 cash for the premium on an 18-
month insurance policy.
0
The company completed and delivered a set of plans for a
client and collected $16,200 cash.
0
The company purchased $35,000 of additional drafting
equipment by paying $22,000 cash and signing a long-term
note payable for $13,000.
0
The company completed $34,000 of engineering services
for a client. This amount is to be received in 30 days.
0
The company purchased $2,400 of additional office
equipment on credit.
0
The company completed engineering services for $27.000
on credit.
0
The company received a bill for rent of equipment that was
used on a recently completed job. The $2,550 rent cost
must be paid within 30 days.
0
The company collected $17,000 cash in partial payment
from the client billed on June 9.
0
The company paid $1,400 cash for wages to a drafting
assistant.
0
The company paid $2,400 cash to settle the account
payable created in on June 8.
0
The company paid $1,550 cash for minor repairs of its
drafting equipment.
0
Melanie Duerr withdrew $9.980 cash from the company for
personal use.
0
The company paid $1,400 cash for wages to a drafting
assistant.
0
The company paid $3,500 cash for advertisements on the
web during June.
0
Total change in equity
0
< Balance Sheet
Impact on Equity >
$
Transcribed Image Text:General Requirement General Journal Trial Balance Income Statement St Owners Equity Balance Sheet Impact on Equity Ledger While the balance sheet reports the detail of individual assets and liabilities, owner's equity is reported in total. The expanded accounting equation shows the four subsets of equity: Revenues, Expenses, Owner investments and Owner withdrawals. Using the dropdown buttons, indicate the impact each transaction has on total equity (if any). Compare the total with the amount of equity reported on the balance sheet. Show less Transaction Impact on Equity Melanie Duerr, the owner, invested $150,000 cash, office equipment with a value of $17,500, and $85,000 of drafting equipment to launch the company. $ 0 The company purchased land worth $61,500 for an office by paying $23,800 cash and signing a long-term note payable for $37,700. 0 The company purchased a portable building with $42,500 cash and moved it onto the land acquired on June 2. 0 The company paid $10,500 cash for the premium on an 18- month insurance policy. 0 The company completed and delivered a set of plans for a client and collected $16,200 cash. 0 The company purchased $35,000 of additional drafting equipment by paying $22,000 cash and signing a long-term note payable for $13,000. 0 The company completed $34,000 of engineering services for a client. This amount is to be received in 30 days. 0 The company purchased $2,400 of additional office equipment on credit. 0 The company completed engineering services for $27.000 on credit. 0 The company received a bill for rent of equipment that was used on a recently completed job. The $2,550 rent cost must be paid within 30 days. 0 The company collected $17,000 cash in partial payment from the client billed on June 9. 0 The company paid $1,400 cash for wages to a drafting assistant. 0 The company paid $2,400 cash to settle the account payable created in on June 8. 0 The company paid $1,550 cash for minor repairs of its drafting equipment. 0 Melanie Duerr withdrew $9.980 cash from the company for personal use. 0 The company paid $1,400 cash for wages to a drafting assistant. 0 The company paid $3,500 cash for advertisements on the web during June. 0 Total change in equity 0 < Balance Sheet Impact on Equity > $
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