Question

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

a. 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.

b. The company purchased land worth \)49,000 for an office by paying \(6,300 cash and signing a longterm note payable for \)42,700.

c. The company purchased a portable building with \(55,000 cash and moved it onto the land acquired in b.

d. The company paid \)3,000 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 \(6,200 cash.

f. The company purchased \)20,000 of additional drafting equipment by paying \(9,500 cash and signing a long-term note payable for \)10,500.

g. The company completed \(14,000 of engineering services for a client. This amount is to be received in 30 days.

h. The company purchased \)1,150 of additional office equipment on credit.

i. The company completed engineering services for \(22,000 on credit.

j. 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.

k. The company collected \(7,000 cash in partial payment from the client described in transaction g.

l. The company paid \)1,200 cash for wages to a drafting assistant.

m. The company paid \(1,150 cash to settle the account payable created in transaction h.

n. The company paid \)925 cash for minor maintenance of its drafting equipment.

o. The company paid \(9,480 cash in dividends.

p. The company paid \)1,200 cash for wages to a drafting assistant.

q. The company paid $2,500 cash for advertisements on the web during June.

Required

3. Prepare a trial balance as of the end of June.

Short answer

The total trial balance matches at $261,733.

Step-by-step solution

No. of accounts

In the given case, there are 16 accounts in the general ledger, out of those 12 accounts have debit balances and the rest 4 of them have a credit balance. These accounts have been listed in the trial balance in step 2.

Trial Balance

Karla Tanner
Trial Balance
April 30
	Debit	Credit
Cash	$ 22,945
Accounts Receivables	29,000
Prepaid Insurance	3,000
Office Equipment	6,150
Drafting Equipment	80,000
Building	55,000
Land	49,000
Accounts Payable		$ 1,333
Notes Payable		53,200
Common Stock		165,000
Dividends	9,480
Engineering Fees Earned		42,200
Wages Expense	2,400
Equipment Rental Expense	1,333
Advertising Expense	2,500
Repair Expense	925
Total	$ 261,733	$ 261,733