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Problem 2-2A (Part 1 Continued)
i. Accounts Receivable.................................106 22,000
Engineering Fees Earned..................402 22,000
Billed client for completed work.
j. Equipment Rental Expense.......................602 1,333
Accounts Payable..............................201 1,333
Incurred equipment rental expense.
Problem 2-2A (Continued)
Part 2
Cash No. 101 Accounts Payable No. 201
Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 100,000 100,000 (h) 1,150 1,150
(b) 6,300 93,700 (j) 1,333 2,483
(c) 55,000 38,700 (m) 1,150 1,333
Accounts Receivable No. 106 J. Aracel, Withdrawals No. 302
Date PR Debit Credit Balance Date PR Debit Credit Balance
(g) 14,000 14,000 (o) 9,480 9,480
Date PR Debit Credit Balance
Prepaid Insurance No. 108 (e) 6,200 6,200
Office Equipment No. 163 Wages Expense No. 601
Date PR Debit Credit Balance Date PR Debit Credit Balance
Drafting Equipment No. 164 Equipment Rental Expense No. 602
Date PR Debit Credit Balance Date PR Debit Credit Balance
Building No. 170 Advertising Expense No. 603
Date PR Debit Credit Balance Date PR Debit Credit Balance
Land No. 172 Repairs Expense No. 604
Date PR Debit Credit Balance Date PR Debit Credit Balance
Problem 2-2A (Concluded)
Part 3
ARACEL ENGINEERING
Trial Balance
June 30
Debit Credit
Cash........................................................... $ 22,945
Accounts receivable................................. 29,000
Prepaid insurance..................................... 3,000
Problem 2-3A (90 minutes)
Part 1
Mar. 1 Cash............................................................101 150,000
Office Equipment.......................................163 22,000
3 Office Equipment.......................................163 3,000
Office Supplies...........................................124 1,200
Accounts Payable..............................201 4,200
Purchased equipment and supplies on credit.
6 Cash............................................................101 4,000
Services Revenue...............................403 4,000
Received cash for services.
Paid monthly utility bill.
Problem 2-3A (Continued)
Part 2
Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
Mar. 1 G1 150,000 150,000
2 G1 6,000 144,000
6 G1 4,000 148,000
Accounts Receivable Acct. No. 106
Date Explanation PR Debit Credit Balance
Mar. 9 G1 7,500 7,500
Office Supplies Acct. No. 124
Date Explanation PR Debit Credit Balance
Prepaid Insurance Acct. No. 128
Date Explanation PR Debit Credit Balance
Prepaid Rent Acct. No. 131
Date Explanation PR Debit Credit Balance
Office Equipment Acct. No. 163
Date Explanation PR Debit Credit Balance
Problem 2-3A (Continued)
Part 2 (Continued)
Accounts Payable Acct. No. 201
Date Explanation PR Debit Credit Balance
D. Brooks, Capital Acct. No. 301
Date Explanation PR Debit Credit Balance
D. Brooks, Withdrawals Acct. No. 302
Date Explanation PR Debit Credit Balance
Services Revenue Acct. No. 403
Date Explanation PR Debit Credit Balance
Mar. 6 G1 4,000 4,000
Utilities Expense Acct. No. 690
Date Explanation PR Debit Credit Balance
Problem 2-3A (Concluded)
Part 3
VENTURE CONSULTANTS
Trial Balance
March 31
Debit Credit
Cash .................................................................... $136,700
Accounts receivable........................................... 7,820
Office supplies.................................................... 1,800
Problem 2-4A (90 minutes)
Part 1
a. Cash.........................................................101 60,000
Owner invested cash and equipment.
b. Land.........................................................172 40,000
Purchased land and building with cash and
note payable.
Purchased office supplies on account.
Owner contributed automobile to business.
Purchased office equipment on account.
Paid assistant’s salary.
Provided services for cash.
Paid cash for utilities.
Problem 2-4A (Part 1 Continued)
Paid cash on account.
Purchased new equipment with cash.
Provided services on account.
Paid assistant’s salary.
Received cash due on account.
Owner withdrew cash for personal use.
Problem 2-4A (Continued)
Part 2
Cash No. 101 Land No. 172
Date PR Debit Credit Balance Date PR Debit Credit Balance
(a) 60,000 60,000 (b) 40,000 40,000
(b) 30,000 30,000
Accounts Receivable No. 106
Date PR Debit Credit Balance
(k) 6,250 6,250 H. Venedict, Capital No. 301
Date PR Debit Credit Balance
(g) 8,000 8,000
(k) 6,250 14,250
Automobiles No. 164 Salaries Expense No. 601
Date PR Debit Credit Balance Date PR Debit Credit Balance
(l) 1,800 3,600
Building No. 170
Date PR Debit Credit Balance Utilities Expense No. 602
(h) 635 635
