ACC/290T Principles of Accounting 1

Get 100% ACC/290T Principles of Accounting 1 answers for $25. Expertly done with correct answers. Get answers for this complete assignment.

Week 2 Apply

  1. A collection of accounts and account balances is referred to as a(n) _general ledger_____.
  2. A(n) _source document_____ , such as a bank statement, is objective evidence of transactions and their amounts
  3. A _chart_____ of accounts is a list of all accounts a company uses not including account balances.
  4. Increases and decreases in a specific asset, liability, equity, revenue, or expense are recorded in a(n) __account____.
  5. A complete record of all transactions made by an organization is kept in a(n) journal______.


For each of the following (1) identify the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) select debit (Dr.) or credit (Cr.) to identify the kind of entry that would increase the account balance.

  
 
Account Type of Account Normal Balance Increase (Dr. or Cr.) a. Accounts Receivable Asset Debit Debit b. Owner, Withdrawals Equity Debit Debit c. License Fee Revenue Revenue Credit Credit d. Unearned Revenue Liability Credit Credit e. Fees Earned Revenue Credit Credit f. Equipment Asset Debit Debit g. Notes Payable Liability Credit Credit h. Owner, Capital Equity Credit Credit i. Supplies Asset Debit Debit j Accounts Payable Liability Credit Credit k Consulting Revenue Revenue Credit Credit l. Salaries Expense Expense Debit Debit

Posting errors are identified in the following table. In column (1), enter the amount of the difference between the two trial balance columns (debit and credit) due to the error. In column (2), identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under- or overstated. Item (a) is completed as an example. (Select “None” if there is no effect.)

 
Description of Posting Error (1) Difference between Debit and Credit Columns (2) Column with the Larger Total (3) Identify Account(s) Incorrectly Stated (4) Amount That Account(s) Over- or Understated a. $1,760 debit to Rent Expense is posted as a $1,670 debit. $90 Credit Rent Expense Rent Expense is understated by $90 b. $3,520 credit to Cash is posted twice as two credits to Cash. $3,520 Credit Cash Cash is understated by $3,520 c. $7,040 debit to the Withdrawals account is debited to Owner’s Capital. None Owner’s capital Owner’s capital account is understated by $7,040 Owner’s withdrawals Owner’s Withdrawals account is understated by $7,040 d. $1,610 debit to Prepaid Insurance is posted as a debit to Insurance Expense. None Prepaid insurance Prepaid insurance is understated by $1,610 Insurance expense Insurance expense is overstated by $1,610 e. $30,800 debit to Machinery is posted as a debit to Accounts Payable. None Machinery Machinery is understated by $30,800 Accounts payable Accounts payable is understated by $30,800 f. $4,420 credit to Services Revenue is posted as a $442 credit. $3,978 Debit Services revenue Services revenue is understated by $3,978 g. $800 debit to Store Supplies is not posted. $800 Credit Store supplies Store supplies is understated by $800

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

  1. Jenna Aracel, the owner, invested $165,000 cash, office equipment with a value of $8,700, and $70,000 of drafting equipment to launch the company.
  2. The company purchased land worth $51,000 for an office by paying $6,400 cash and signing a long-term note payable for $44,600.
  3. The company purchased a portable building with $52,000 cash and moved it onto the land acquired in b.
  4. The company paid $3,000 cash for the premium on an 18-month insurance policy.
  5. The company completed and delivered a set of plans for a client and collected $9,800 cash.
  6. The company purchased $33,000 of additional drafting equipment by paying $11,700 cash and signing a long-term note payable for $21,300.
  7. The company completed $14,500 of engineering services for a client. This amount is to be received in 30 days.
  8. The company purchased $2,000 of additional office equipment on credit.
  9. The company completed engineering services for $30,000 on credit.
  10. The company received a bill for rent of equipment that was used on a recently completed job. The $1,611 rent cost must be paid within 30 days.
  11. The company collected $10,000 cash in partial payment from the client described in transaction g.
  12. The company paid $1,300 cash for wages to a drafting assistant.
  13. The company paid $2,000 cash to settle the account payable created in transaction h.
  14. The company paid $1,105 cash for minor maintenance of its drafting equipment.
  15. Jenna Aracel withdrew $10,550 cash from the company for personal use.
  16. The company paid $2,400 cash for wages to a drafting assistant.
  17. The company paid $3,500 cash for advertisements on the Web during June.

Required:
1. Prepare general journal entries to record these transactions using the following 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); and Repairs Expense (604).
2. Post the journal entries from part 1 to the ledger accounts.
3. Prepare a trial balance as of the end of June.
  

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Prepare general journal entries to record these transactions using the following 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); and Repairs Expense (604).

Show less

NoTransactionAccount TitleDebitCredit
1aCash165,000
Office equipment8,700
Drafting equipment70,000
2bLand51,000
Notes payable44,600
Cash6,400
3cBuilding52,000
Cash52,000
4dPrepaid insurance3,000
Cash3,000
5eCash9,800
Engineering fees earned9,800
6fDrafting equipment33,000
Cash11,700
Notes payable21,300
7gAccounts receivable14,500
Engineering fees earned14,500
8hOffice equipment2,000
Accounts payable2,000
9iAccounts receivable30,000
Engineering fees earned30,000
10jEquipment rental expense1,611
Accounts payable1,611
11kCash10,000
Accounts receivable10,000
12lWages expense1,300
Cash1,300
13mAccounts payable2,000
Cash2,000
14nRepairs expense1,105
Cash1,105
15oJ. Aracel, Withdrawals10,550
Cash10,550
16pWages expense2,400
Cash2,400
17qAdvertising expense3,500
Cash3,500
  • Required 1
  • Required 2

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Post the journal entries from part 1 to the ledger accounts.

 
101: Cash 106: Accounts Receivable Transaction Debit Credit Balance Transaction Debit Credit Balance   a. 165,000 165,000 g. 14,500 14,500   b. 6,400 158,600 i. 30,000 44,500   c. 52,000 106,600 k. 10,000 34,500   d. 3,000 103,600   e. 9,800 113,400   f. 11,700 101,700 k. 10,000 111,700 l. 1,300 110,400 m. 2,000 108,400 n. 1,105 107,295 o. 10,550 96,745 p. 2,400 94,345 q. 3,500 90,845   108: Prepaid Insurance 163: Office Equipment Transaction Debit Credit Balance Transaction Debit Credit Balance   d. 3,000 3,000 a. 8,700 8,700   h. 2,000 10,700         164: Drafting Equipment 170: Building Transaction Debit Credit Balance Transaction Debit Credit Balance   a. 70,000 70,000 c. 52,000 52,000   f. 33,000 103,000         172: Land 201: Accounts Payable Transaction Debit Credit Balance Transaction Debit Credit Balance   b. 51,000 51,000 h. 2,000 2,000   j. 1,611 3,611   m. 2,000 1,611       250: Notes Payable 301: J. Aracel, Capital Transaction Debit Credit Balance Transaction Debit Credit Balance   b. 44,600 44,600 a. 243,700   f. 21,300 65,900         302: J. Aracel, Withdrawals 402: Engineering Fees Earned Transaction Debit Credit Balance Transaction Debit Credit Balance   o. 10,550 10,550 e. 9,800 9,800   g. 14,500 24,300   30,000 54,300       601: Wages Expense 602: Equipment Rental Expense Transaction Debit Credit Balance Transaction Debit Credit Balance   l. 1,300 1,300 j. 1,611 1,611   p. 2,400 3,700         603: Advertising Expense 604: Repairs Expense Transaction Debit Credit Balance Transaction Debit Credit Balance   q. 3,500 3,500 n. 1,105 1,105        
  • Required 1
  • Required 3

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3

Prepare a trial balance as of the end of June.

 
ARACEL ENGINEERING Trial Balance June 30 Debit Credit Cash $91,045 Accounts receivable 34,500 Prepaid insurance 2,800 Office equipment 10,700 Drafting equipment 103,000 Building 52,000 Land 51,000 Accounts payable 1,611 Notes payable 65,900 J. Aracel, Capital 243,700 J. Aracel, Withdrawals 10,550 Engineering fees earned 54,300 Wages expense 3,700 Equipment rental expense 1,611 Advertising expense 3,500 Repairs expense 1,105 Totals $365,511 $365,511
  • Required 2
  • Required 3

How to Get Correct Answers for ACC/290T Principles of Accounting 1

Live Chat with us to purchase these answers for $25.