Question

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

J. Aracel, the owner, invested $150,000 cash, office equipment with a value of $9,700, and $80,000 of drafting equipment to launch the company in exchange for common stock.
The company purchased land worth $58,000 for an office by paying $7,600 cash and signing a note payable for $50,400.
The company purchased a portable building with $57,000 cash and moved it onto the land acquired in b.
The company paid $2,000 cash for the premium on an 18-month insurance policy.
The company provided services to a client and collected $6,200 cash.
The company purchased $28,000 of additional drafting equipment by paying $11,800 cash and signing a note payable for $16,200.
The company completed $19,500 of services for a client. This amount is to be received in 30 days.
The company purchased $1,300 of additional office equipment on credit.
The company completed $22,000 of services for a customer on credit.
The company purchased $1,328 of TV advertising on credit.
The company collected $6,000 cash in partial payment from the client described in transaction g.
The company paid $1,700 cash for employee wages.
The company paid $1,300 cash to settle the account payable created in transaction h.
The company paid $955 cash for repairs.
The company paid a $9,670 cash dividend.
The company paid $1,300 cash for employee wages.
The company paid $4,200 cash for advertisements on the Web during June.

Answer 1

The journal entries for the June transactions by Aracel Engineering are as follows:

Journal Entries:

Debit Cash $150,000

Debit Office Equipment $9,700

Debit Drafting Equipment $80,000

Credit Common Stock $239,700

Debit Land $58,000 Csh $7,600

Credit Note Payable $50,400

Debit Building $57,000

Credit Cash $57,000

Debit Prepaid Insurance $2,000

Credit Cash $2,000

Debit Cash $6,200

Credit Service Revenue $6,200

Debit Drafting Equipment $28,000

Credit Cash $11,800

Credit Note Payable $16,200

Debit Accounts Receivable $19,500

Credit Service Revenue $19,500

Debit Office Equipment $1,300

Credit Accounts Payable $1,300

Debit Accounts Receivable $22,000

Credit Service Revenue $22,000

Debit Advertising Expense $1,328

Credit Accounts Payable $1,328

Debit Cash $6,000

Credit Accounts Receivable $6,000

Debit Wages expense $1,700

Credit Cash $1,700

Debit Accounts Payable $1,328

Credit Cash $1,300

Credit Cash Discounts $28

Debit Repairs Expense $955

Credit Cash $955

Debit Dividend $9,670

Credit Cash $9,670

Debit Wages expense $1,300

Credit Cash $1,300

Debit Advertising expense $4,200

Credit Cash $4,200

Transaction Analysis:

Cash $150,000 Office Equipment $9,700 Drafting Equipment $80,000 Common Stock $239,700

Land $58,000 Csh $7,600 Note Payable $50,400

Building $57,000 Cash $57,000

Prepaid Insurance $2,000 Cash $2,000

Cash $6,200 Service Revenue $6,200

Drafting Equipment $28,000 Cash $11,800 Note Payable $16,200

Accounts Receivable $19,500 Service Revenue $19,500

Office Equipment $1,300 Accounts Payable $1,300

Accounts Receivable $22,000 Service Revenue $22,000

Advertising Expense $1,328 Accounts Payable $1,328

Cash $6,000 Accounts Receivable $6,000

Wages expense $1,700 Cash $1,700

Accounts Payable $1,300 Cash $1,300 Cash Discounts $28

Repairs Expense $955 Cash $955

Dividend $9,670 Cash $9,670

Wages expense $1,300 Cash $1,300

Advertising expense $4,200 Cash $4,200

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Question Completion:

Journalize the transactions