Answer:
Aracel Engineering
General Journal Entries:
a. Debit Cash (101) $100,000
Debit Office Equipment (163) $5,000
Debit Drafting Equipment (164) $60,000
Credit J. Aracel, Capital (301) $165,000
To record the owner's investments in the business.
b. Debit Land (172) $49,000
Credit Cash (101) $6,300
Credit Notes Payable (250) $42,700
To record the purchase of land for cash and note.
c. Debit Building (170) $55,000
Credit Cash (101) $55,000
To record the purchase of a portable building.
d. Prepaid Insurance (108) $3,000
Credit Cash (101) $3,000
To record the prepayment of insurance premium for 18 months.
e. Debit Credit Cash (101) $6,200
Credit Engineering Fees Earned (402) $6,200
To record the completion of plans for cash.
f. Debit Drafting Equipment (164) $20,000
Credit Credit Cash (101) $9,500
Credit Notes Payable (250) $10,500
To record the purchase of additional drafting equipment.
g. Debit Accounts Receivable (106) $14,000
Credit Engineering Fees Earned (402) $14,000
To record the completion of engineering services for a client.
h. Debit Office Equipment (163) $1,150
Credit Accounts Payable (201) $1,150
To record the purchase of additional office equipment on account.
i. Debit Accounts Receivable (106) $22,000
Credit Engineering Fees Earned (402) $22,000
To record the completion of engineering services for a client.
j. Debit Equipment Rental Expense (602) $1,333
Credit Accounts Payable (201) $1,333
To record the accrual of rent expense.
k. Debit Credit Cash (101) $7,000
Credit Accounts Receivable (106) $7,000
To record the partial payment from the client in transaction g.
l. Debit Wages Expense (601) $1,200
Credit Cash (101) $1,200
To record the payment of wages.
m. Debit Accounts Payable (201) $1,150
Credit Cash (101) $1,150
To record the full settlement of transaction h account.
n. Debit Repairs Expense (604) $925
Credit Credit Cash (101) $925
To record the payment for minor maintenance.
o. Debit J. Aracel, Withdrawals (302) $9,480
Credit Cash (101) $9,480
To record the personal withdrawal by Jenna Aracel.
p. Debit Wages Expense (601) $1,200
Credit Cash (101) $1,200
To record the payment of wages.
q. Debit Advertising Expense (603) $2,500
Credit Cash (101) $2,500
To record the payment of Web advertisements.
Explanation:
a) Data and Account 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)
J. Aracel, Capital (301)
J. Aracel, Withdrawals (302)
Engineering Fees Earned (402)
Wages Expense (601)
Equipment Rental Expense (602)
Advertising Expense (603)
Repairs Expense (604)
