Question

Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.
Jun. 1 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 in exchange for common stock.
Jun. 2 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.
Jun. 3 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2.
Jun. 4 The company paid $3,000 cash for the premium on an 18-month insurance policy.
Jun. 5 The company completed and delivered a set of plans for a client and collected $6,200 cash.
Jun. 6 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500.
Jun. 7 The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.
Jun. 8 The company purchased $1,150 of additional office equipment on credit.
Jun. 9 The company completed engineering services for $22,000 on credit.
Jun. 10 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.
Jun. 12 The company collected $7,000 cash in partial payment from the client billed on June 9.
Jun. 14 The company paid $1,200 cash for wages to a drafting assistant.
Jun. 17 The company paid $1,150 cash to settle the account payable created in on June 8.
Jun. 20 The company paid $925 cash for minor maintenance of its drafting equipment.
Jun. 23 The company paid $9,480 cash in dividends.
Jun. 28 The company paid $1,200 cash for wages to a drafting assistant.
Jun. 29 The company paid $2,500 cash for advertisements on the web during June.

Required:
Journalize the above entires.

Answer 1

Answer:

1 - Cash (Dr.) $100,000

Office equipment (Dr.) $5,000

Drafting equipment (Dr.) $60,000

Capital (Cr.) $165,000

2- Land (Dr.) $49,000

Cash (Cr.) $6,300

Long term notes payable (Cr.) $42,700

3- Portable building (Dr.) $55,000

Cash (Cr.) $55,000

4- Insurance premium (Dr.) $3,000

Cash (Cr.) $3,000

5- Cash (Dr.) $6,200

Service Revenue (Cr.) $6,200

Explanation:

6- Drafting equipment (Dr.) $20,000

Cash (Cr.) $9,500

Long term notes payable (Cr.) $10,500

7- Accounts Receivable (Dr.) $14,000

Service revenue (Cr.) $14,000

8- Office equipment (Dr.) $1,150

Accounts Payable (Cr.) $1,150

9- Accounts Receivable (Dr.) $22,000

Engineering Service (Cr.) $22,000

10- Cash (Dr.) $9,000

Accounts Receivable (Cr.) $9,000

11- Wages expense (Dr.) $1,200

Cash (Cr.) $1,200

12- Accounts Payable (Dr.) $1,150

Cash (Cr.) $1,150

13- Maintenance expense (Dr.) $925

Cash (Cr.) $925

14- Dividends (Dr.) $9,480

Cash (Cr.) $9,480

15- Wages expense (Dr.) $1,200

Cash (Cr.) $1,200

16- Advertising expense (Dr.) $2,500

Cash (Cr.) $2,500