
Concept Introduction
T Account: A T-account is the graphical representation of a general ledger that records business transactions. A T-Account looks like the letter T, where the debit entries are recorded at the left side, the credit entries are recorded on the right side and the account title is at the top.
1.
To Prepare: The journal entries for the transactions given for Aracel Engineering.

Explanation of Solution
The journal entries for the transactions given are prepared as below for Aracel Engineering.
Date | Account | Debit ($) | Credit (S) |
a | Cash | 100,000 | |
Office Equipment | 5,000 | ||
Drafting Equipment | 60,000 | ||
J. Arcel, Capital | 165,000 | ||
b | Land | 49,000 | |
Cash | 6,300 | ||
Note Payable | 42,700 | ||
c | Building | 55,000 | |
Cash | 55,000 | ||
d | Prepaid Insurance | 3,000 | |
Cash | 3,000 | ||
e | Cash | 4,000 | |
Engineering Fee Earned | 4,000 | ||
f | Drafting Equipment | 20,000 | |
Cash | 5,900 | ||
Note Payable | 10,500 | ||
g | 14,000 | ||
Engineering Fee Earned | 14,000 | ||
h | Office Equipment | 1,150 | |
Account Payable | 1,150 | ||
i | Account Receivable | 22,000 | |
Engineering Fee Earned | 22,000 | ||
j | Equipment Rental Expenses | 1,333 | |
Account Payable | 1,333 | ||
k | Cash | 7,000 | |
Account receivable | 7,000 | ||
l | Wages Expenses | 1,200 | |
Cash | 1,200 | ||
m | Account Payable | 1,150 | |
Cash | 1,150 | ||
n | Repairs Expenses | 925 | |
Cash | 925 | ||
o | J. Arcel, Withdrawals | 9,480 | |
Cash | 9,480 | ||
p | Wages Expenses | 1,200 | |
Cash | 1,200 | ||
q | Advertising Expenses | 2,500 | |
Cash | 2,500 |
2.
To Prepare: The T-accounts for the transactions given for Aracel Engineering.

Explanation of Solution
T-accounts prepared as below for Aracel Engineering.
Cash Account (101) | |||
Debit | Amount ($) | Credit | Amount ($) |
J. Arcel, Capital | 100,000 | Land | 6,300 |
Engineering Fee Earned | 6,200 | Building | 55,000 |
Account receivable | 7,000 | Prepaid Insurance | 3,000 |
Drafting Equipment | 9,500 | ||
Wages Expenses | 1,200 | ||
Account Payable | 1,150 | ||
Repairs Expenses | 925 | ||
J. Arcel, Withdrawals | 9,480 | ||
Wages Expenses | 1,200 | ||
Advertising Expenses | 2,500 | ||
Closing Balance | 22,945 |
Account receivable Account (106) | |||
Debit | Amount ($) | Credit | Amount ($) |
Engineering Fee Earned | 14,000 | Cash | 7,000 |
Engineering Fee Earned | 22,000 | ||
Closing Balance | 29,000 |
Prepaid Insurance Account (108) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 3,000 | ||
Closing Balance | 3,000 |
Office Equipment Account (164) | |||
Debit | Amount ($) | Credit | Amount ($) |
J. Arcel, Capital | 5,000 | ||
Account Payable | 1,150 | ||
Closing Balance | 6,150 |
Drafting Equipment Account (163) | |||
Debit | Amount ($) | Credit | Amount ($) |
J. Arcel, Capital | 60,000 | ||
Cash | 9,500 | ||
Note Payable | 10,500 | ||
Closing Balance | 80,000 |
Building Account (163) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 55,000 | ||
Closing Balance | 55,000 |
Land Account (163) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 6,300 | ||
Note Payable | 42,700 | ||
Closing Balance | 49,000 |
Account Payable Account (201) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 1,150 | Office Equipment | 1,150 |
Equipment Rental Expenses | 1,333 | ||
Closing Balance | 1,333 |
Notes Payable Account (250) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 11,600 | Land | 42,700 |
Drafting Equipment | 10,500 | ||
Closing Balance | 53,200 |
J. Arcel, Capital Account (301) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 100,000 | ||
Office Equipment | 5,000 | ||
Drafting Equipment | 60,000 | ||
Closing Balance | 165,000 |
J. Arcel, Withdrawals Account (302) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 9,480 | ||
Closing Balance | 9,480 |
Engineering Fee Earned Account (402) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 6,200 | ||
Account receivable | 14,000 | ||
Account receivable | 22,000 | ||
Closing Balance | 42,200 |
Wages Expenses Account (601) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 1,200 | ||
Cash | 1,200 | ||
Closing Balance | 2,400 |
Equipment Rental Expenses Account (602) | |||
Debit | Amount ($) | Credit | Amount ($) |
Account Payable | 1,333 | ||
Closing Balance | 1,333 |
Advertising Expenses Account (603) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 2,500 | ||
Closing Balance | 2,500 |
Repair Expenses Account (604) | |||
Debit | Amount ($) | Credit | Amount ($) |
Cash | 925 | ||
Closing Balance | 925 |
3.
To Prepare: The trial balance for the transactions given for Aracel Engineering as of April 30.

Explanation of Solution
The trail balance prepared as below for Aracel Engineering.
Aracel Engineering | ||
Trail balance as on June 30 | ||
Account | Debit ($) | Credit ($) |
Cash | 22,945 | |
Account receivable | 29,000 | |
Prepaid Insurance | 3,000 | |
Office Equipment | 6,150 | |
Drafting Equipment | 80,000 | |
Building | 55,000 | |
Land | 49,000 | |
Account Payable | 1,333 | |
Notes Payable | 53,200 | |
J. Arcel, Capital | 165,000 | |
J. Arcel, Withdrawals | 9,480 | |
Engineering Fee Earned | 42,200 | |
Wages Expenses | 2,400 | |
Equipment Rental Expenses | 1,333 | |
Adverting Expenses | 2,500 | |
Repair Expenses | 925 | |
Total | 261,733 | 261,733 |
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