Posted: March 6th, 2014
Prepare general journal entries to record these transactions
| a. |
 To launch the company, Jenna Aracel, the owner, invested $210,000 cash, office equipment with a value of $6,500, and $78,000 of drafting equipment in exchange for common stock. |
| b. |
The company purchased land worth $57,000 for an office by paying $8,900 cash and signing a long-term note payable for $48,100. |
| c. |
The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. |
| d. | The company paid $3,500 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 $7,000 cash. |
| Â f. |
The company purchased $34,000 of additional drafting equipment by paying $9,600 cash and signing a long-term note payable for $24,400. |
| g. |
The company completed $19,500 of engineering services for a client. This amount is to be received in 30 days. |
| h. | The company purchased $1,650 of additional office equipment on credit. |
| i. | The company completed engineering services for $20,000 on credit. |
| j. |
The company received a bill for rent of equipment that was used on a recently completed job. The $1,617 rent cost must be paid within 30 days. |
| k. | The company collected $7,000 cash in partial payment from the client described in transaction g. |
| l. | The company paid $1,600 cash for wages to a drafting assistant. |
| m. | The company paid $1,650 cash to settle the account payable created in transaction h. |
| n. | The company paid $900 cash for minor maintenance of its drafting equipment. |
| o. | The company paid $9,950 cash in dividends. |
| p. | The company paid $2,200 cash for wages to a drafting assistant. |
| q. | The company paid $4,100 cash for advertisements on the Web during June. |
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