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); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604).
Transactions:
Aracel Engineering completed the following transactions in the month of June.
Jenna Aracel, the owner, invested $205,000 cash, office equipment with a value of $8,200, and $70,000 of drafting equipment to launch the company in exchange for common stock.
The company purchased land worth $56,000 for an office by paying $9,800 cash and signing a long-term note payable for $46,200.
The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b.
The company paid $4,200 cash for the premium on an 18-month insurance policy.
The company completed and delivered a set of plans for a client and collected $7,600 cash.
The company purchased $34,000 of additional drafting equipment by paying $10,400 cash and signing a long-term note payable for $23,600.
The company completed $16,000 of engineering services for a client. This amount is to be received in 30 days.
The company purchased $1,950 of additional office equipment on credit.
The company completed engineering services for $27,000 on credit.
The company received a bill for rent of equipment that was used on a recently completed job. The $1,591 rent cost must be paid within 30 days.
The company collected $9,000 cash in partial payment from the client described in transaction g.
The company paid $1,100 cash for wages to a drafting assistant.
The company paid $1,950 cash to settle the account payable created in transaction h.
The company paid $1,110 cash for minor maintenance of its drafting equipment.
The company paid $9,880 cash in dividends.
The company paid $2,000 cash for wages to a drafting assistant.
The company paid $4,300 cash for advertisements on the Web during June.

Jenna Aracel, the owner, invested $205,000 cash, office equipment with a value of $8,200, and $70,000 of drafting equipment to launch the company in exchange for common stock.

Dr Cash 205,000

Dr Office equipment 8,200

Dr Drafting equipment 70,000

    Cr Common stock 283,200

The company purchased land worth $56,000 for an office by paying $9,800 cash and signing a long-term note payable for $46,200.

Dr Land 56,000

    Cr Cash 9,800

    Cr Notes payable 46,200

The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b.

Dr Building 58,000

    Cr Cash 58,000

The company paid $4,200 cash for the premium on an 18-month insurance policy.

Dr Prepaid insurance 4,200

    Cr Cash 4,200

The company completed and delivered a set of plans for a client and collected $7,600 cash.

Dr Cash 7,600

    Cr Engineering fees 7,600

The company purchased $34,000 of additional drafting equipment by paying $10,400 cash and signing a long-term note payable for $23,600.

Dr Drafting equipment 34,000

    Cr Cash 10,400

    Cr Notes payable 23,600

The company completed $16,000 of engineering services for a client. This amount is to be received in 30 days.

Dr Accounts receivable 16,000

    Cr Engineering fees 16,000

The company purchased $1,950 of additional office equipment on credit.

Dr Office equipment 1,950

    Cr Accounts payable 1,950

The company completed engineering services for $27,000 on credit.

Dr Accounts receivable 27,000

    Cr Engineering fees 27,000

The company received a bill for rent of equipment that was used on a recently completed job. The $1,591 rent cost must be paid within 30 days.

Dr Equipment rental expense

    Cr Accounts payable 1,591

The company collected $9,000 cash in partial payment from the client described in transaction g.

Dr Cash 9,000

    Cr Accounts receivable 9,000

The company paid $1,100 cash for wages to a drafting assistant.

Dr Wages expense 1,100

    Cr Cash 1,100

The company paid $1,950 cash to settle the account payable created in transaction h.

Dr Accounts payable 1,950

    Cr Cash 1,950

The company paid $1,110 cash for minor maintenance of its drafting equipment.

Dr Repairs expense 1,110

    Cr Cash 1,110

The company paid $9,880 cash in dividends.

Dr Dividends 9,880

    Cr Cash 9,880

The company paid $2,000 cash for wages to a drafting assistant.

Dr Wages expense 2,000

    Cr Cash 2,000

The company paid $4,300 cash for advertisements on the Web during June.

Dr Advertising expense 4,300

    Cr Cash 4,300