Preparing journal entries: Abdullah Engineering completed the following transactions in the month of June. Amina Abdullah, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company. 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. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b. The company paid $3,000 cash for the premium on an 18-month insurance policy. The company completed and delivered a set of plans for a client and collected $6,200 cash. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. The company purchased $1,150 of additional office equipment on credit. The company completed engineering services for $22,000 on credit. 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. The company collected $7,000 cash in partial payment from the client described in transaction g. The company paid $1,200 cash for wages to a drafting assistant. The company paid $1,150 cash to settle the account payable created in transaction h. The company paid $925 cash for minor maintenance of its drafting equipment. Amina Abdullah withdrew $9,480 cash from the company for personal use. The company paid $1,200 cash for wages to a drafting assistant. The company paid $2,500 cash for advertisements on the web during June. Required Prepare general journal entries to record the above transactions. Note: Prepare only Journal Entries. When you make journal entries (use the following accounts) to show the account number. Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); A. Abdullah, Capital (301); A. Abdullah, Withdrawals (302); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.

Preparing journal entries: Abdullah Engineering completed the following transactions in the month of June. Amina Abdullah, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company. 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. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b. The company paid $3,000 cash for the premium on an 18-month insurance policy. The company completed and delivered a set of plans for a client and collected $6,200 cash. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. The company purchased $1,150 of additional office equipment on credit. The company completed engineering services for $22,000 on credit. 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. The company collected $7,000 cash in partial payment from the client described in transaction g. The company paid $1,200 cash for wages to a drafting assistant. The company paid $1,150 cash to settle the account payable created in transaction h. The company paid $925 cash for minor maintenance of its drafting equipment. Amina Abdullah withdrew $9,480 cash from the company for personal use. The company paid $1,200 cash for wages to a drafting assistant. The company paid $2,500 cash for advertisements on the web during June. Required Prepare general journal entries to record the above transactions. Note: Prepare only Journal Entries. When you make journal entries (use the following accounts) to show the account number. Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); A. Abdullah, Capital (301); A. Abdullah, Withdrawals (302); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.

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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Problem 1

Preparing journal entries:

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

Amina Abdullah, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company.
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.
The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b.
The company paid $3,000 cash for the premium on an 18-month insurance policy.
The company completed and delivered a set of plans for a client and collected $6,200 cash.
The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500.
The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.
The company purchased $1,150 of additional office equipment on credit.
The company completed engineering services for $22,000 on credit.
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.
The company collected $7,000 cash in partial payment from the client described in transaction g.
The company paid $1,200 cash for wages to a drafting assistant.
The company paid $1,150 cash to settle the account payable created in transaction h.
The company paid $925 cash for minor maintenance of its drafting equipment.
Amina Abdullah withdrew $9,480 cash from the company for personal use.
The company paid $1,200 cash for wages to a drafting assistant.
The company paid $2,500 cash for advertisements on the web during June.

Required

Prepare general journal entries to record the above transactions.

Note: Prepare only Journal Entries. When you make journal entries (use the following accounts) to show the account number.

Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); A. Abdullah, Capital (301); A. Abdullah, Withdrawals (302); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). Post the journal entries from part 1 to the accounts and enter the balance after each posting.

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