Aracel Engineering completed the following transactions in t

Aracel Engineering completed the following transactions in the month of June a. 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 b. 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 c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b. d. The company paid $3,000 cash for the premium on an 18-month insurance policy e. The company completed and delivered a set of plans for a client and collected $6,200 cash. t. The company purchased $20.000 of additional drafting equipment by paying $9500 cash and signing a long- term note payable for $10.500 g. The company completed S14.000 of engineering services for a client. This amount is to be received in 30 days h. The company purchased $1,150 of additional office equipment on credit I. The company completed engineering services for $22.000 on credit j. 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 k. The company collected $7000 cash in partial payment from the client described in transaction g . The company paid $1.200 cash for wages to a drafting assistant m. The company paid $1,150 cash to settle the account payable created in transaction h. n. The company paid $925 cash for minor maintenance of its drafting equipment o. Jenna Aracel withdrew $9.480 cash from the company for personal use p. The company paid $1.200 cash for wages to a drafting assistant q. The company paid $2.500 cash for advertisements on the Web during June

Solution

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Cash    100,000.00 Office Equipment        5,000.00 Drafting Equipment      60,000.00 J. Aracel, Capital    165,000.00 (record the Capital introduced by J Aracel) b. Land      49,000.00 Cash        6,300.00 Notes Payable      42,700.00 (recod the purchase of land) c. Building      55,000.00 Cash      55,000.00 (record the purchase of Building) d. Prepaid Insurance        3,000.00 Cash        3,000.00 (record the insurance paid) e. Cash        6,200.00 Engineering Fees Earned        6,200.00 (Record the fees earned) f. Drafting equipment      20,000.00 Cash        9,500.00 Notes Payable      10,500.00 (Record the drafting equipment purchased) g. Accounts Receivable      14,000.00 Engineering Fees Earned      14,000.00 (Record the fees earned) h. Office Equipment        1,150.00 Accounts Payable        1,150.00 (record the Office Equip. purchased) i. Accounts Receivable      22,000.00 Engineering Fees Earned      22,000.00 (Record the fees earned) j. Equipment Rental Expenses        1,333.00 Accounts Paybale        1,333.00 (Record the Equipment rent expenses) k. Cash        7,000.00 Accounts Receivable        7,000.00 (record the cash collected) l. Wages Expenses        1,200.00 Cash        1,200.00 (record the wages paid) m. Accounts Payable        1,150.00 Cash        1,150.00 (record the cash paid) n. Repair Expenses            925.00 Cash            925.00 (record the repair expenses) o. J Aracel, Withdrawl        9,480.00 Cash        9,480.00 (record the amount withdrawl) p. Wages Expenses        1,200.00 Cash        1,200.00 (record the wages paid) q. Advertsiment Expenses        2,500.00 Cash        2,500.00 (record the advertiment expenses) Answer 2. Cash Accounts Receivable Prepaid insurance Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount a.    100,000.00    100,000.00 g.    14,000.00    14,000.00 d.      3,000.00      3,000.00 b.        6,300.00      93,700.00 i.    22,000.00    36,000.00 c.      55,000.00      38,700.00 k.    7,000.00    29,000.00 d.        3,000.00      35,700.00 e.        6,200.00      41,900.00 f.        9,500.00      32,400.00 k.        7,000.00      39,400.00 l.        1,200.00      38,200.00 m.        1,150.00      37,050.00 n.            925.00      36,125.00 o.        9,480.00      26,645.00 p.        1,200.00      25,445.00 q.        2,500.00      22,945.00 Office Equipment Drafting Equipment Building Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount a.        5,000.00        5,000.00 a.    60,000.00    60,000.00 c.    55,000.00    55,000.00 h.        1,150.00        6,150.00 f.    20,000.00    80,000.00 Land Accounts Payable Notes Payable Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount b.      49,000.00      49,000.00 h.    1,150.00      1,150.00 b.    42,700.00    42,700.00 j.    1,333.00      2,483.00 f.    10,500.00    53,200.00 m.      1,150.00      1,333.00 J. Aracel, Capital J. Aracel, Withdrawls Engineering Fees Earned Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount a.    165,000.00    165,000.00 o.      9,480.00      9,480.00 e.      6,200.00      6,200.00 g.    14,000.00    20,200.00 i.    22,000.00    42,200.00 Wages Expense Equipment Rental Expenses Advertising Expenses Transaction Debit Credit Amount Transaction Debit Credit Amount Transaction Debit Credit Amount l.        1,200.00        1,200.00 j.      1,333.00      1,333.00 q.      2,500.00      2,500.00 p.        1,200.00        2,400.00 Repairs Expenses Transaction Debit Credit Amount n.            925.00            925.00 Answer 3. ARACEL ENGINEERING Trial Balance June 30 Particulars Dr. Amt. Cr. Amt. Cash      22,945.00 Accounts Receivable      29,000.00 Prepaid insurance        3,000.00 Office Equipment        6,150.00 Drafting Equipment      80,000.00 Building      55,000.00 Land      49,000.00 Accounts Payable        1,333.00 Notes Payable      53,200.00 J. Aracel, Capital    165,000.00 J. Aracel, Withdrawls        9,480.00 Engineering Fees Earned      42,200.00 Wages Expense        2,400.00 Equipment Rental Expenses        1,333.00 Advertising Expenses        2,500.00 Repairs Expenses            925.00 Total    261,733.00    261,733.00