Problem 2-2A Preparing and posting journal entries; preparing a trial balance L.O. C3, C4, A1, P1, P2 Shelton Engineering completed the following transactions in the month of June.

Problem 2-2A Preparing and posting journal entries; preparing a trial balance L.O. C3, C4, A1, P1, P2

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

  

a.		Shana Shelton, the owner, invested $105,000 cash, office equipment with a value of $6,000, and $45,000 of drafting equipment to launch the company in exchange for common stock.
b.		The company purchased land worth $54,000 for an office by paying $5,400 cash and signing a long term note payable for $48,600.
c.		The company purchased a portable building with $75,000 cash and moved it onto the land   acquired in b.
d.		The company paid $6,000 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 $5,700 cash.
f.		The company purchased $22,500 of additional drafting equipment by paying $10,500 cash and signing  a long-term note payable for $12,000.
g.		The company completed $12,000 of engineering services for a client. This amount is to be received in 30 days.
h.		The company purchased $2,250 of additional office equipment on credit.
i.		The company completed engineering services for $18,000 on credit.
j.		The company received a bill for rent of equipment that was used on a recently completed job. The $1,200 rent cost must be paid within 30 days.
k.		The company collected $7,200 cash in partial payment from the client described in transaction g.
l.		The company paid $1,500 cash for wages to a drafting assistant.
m.		The company paid $2,250 cash to settle the account payable created in transaction h.
n.		The company paid $675 cash for minor maintenance of its drafting equipment.
o.		The company paid $9,360 cash for dividends.
p.		The company paid $1,500 cash for wages to a drafting assistant.
q.		The company paid $3,000 cash for advertisements in the local newspaper during June.

  

Required:
1.	Record these transactions using the following titles: Cash, Accounts Receivable, Prepaid Insurance, Office Equipment, Drafting Equipment, Building, Land, Accounts Payable, Notes Payable, Common Stock, Dividends, Engineering Fees Earned, Wages Expense, Equipment Rental Expense, Advertising Expense, and Repairs Expense.(Omit the "$" sign in your response.)

  

	General Journal	Debit	Credit
a.	Cash
	Office equipment
	Drafting equipment
	Common stock		156,000
b.	Land	54,000
	Cash
	Note payable
c.	Building	75,000
	Cash		75,000
d.	Prepaid insurance	6,000
	Cash		6,000
e.	Cash	5,700
	Engineering fees earned		5,700
f.	Drafting equipment	22,500
	Cash
	Note payable
g.	Accounts receivable	12,000
	Engineering fees earned		12,000
h.	Office equipment	2,250
	Accounts payable		2,250
i.	Accounts receivable	18,000
	Engineering fees earned		18,000
j.	Equipment rental expense	1,200
	Accounts payable		1,200
k.	Cash	7,200
	Accounts receivable		7,200
l.	Wages expense	1,500
	Cash		1,500
m.	Accounts payable	2,250
	Cash		2,250
n.	Repairs expense	675
	Cash		675
o.	Dividends	9,360
	Cash		9,360
p.	Wages expense	1,500
	Cash		1,500
q.	Advertising expense	3,000
	Cash		3,000

  

2.

Open the ledger accounts for the account titles referred in part 1 and post the journal entries from part 1 to the ledger accounts and enter the balance after each posting. (Record the transactions in given order. Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)

  

Cash
Date		Debit			Credit		Balance
(a)		105,000			0		105,000
(b)		0			5,400		99,600
(c)		0			75,000		24,600
(d)		0			6,000		18,600
(e)		5,700			0		24,300
(f)		0			10,500		13,800
(k)		7,200			0		21,000
(l)		0			1,500		19,500
(m)		0			2,250		17,250
(n)		0			675		16,575
(o)		0			9,360		7,215
(p)		0			1,500		5,715
(q)		0			3,000		2,715

  

Accounts Receivable
Date		Debit			Credit		Balance
(g)		12,000			0		12,000
(i)		18,000			0		30,000
(k)		0			7,200		22,800

  

Prepaid Insurance
Date		Debit			Credit		Balance
(d)		6,000			0		6,000

  

Office Equipment
Date		Debit			Credit		Balance
(a)		6,000			0		6,000
(h)		2,250			0		8,250

  

Drafting Equipment
Date		Debit			Credit		Balance
(a)		45,000			0		45,000
(f)		22,500			0		67,500

  

Building
Date		Debit			Credit		Balance
(c)		75,000			0		75,000

  

Land
Date		Debit			Credit		Balance
(b)		54,000			0		54,000

  

Accounts Payable
Date		Debit			Credit		Balance
(h)		0			2,250		2,250
(j)		0			1,200		3,450
(m)		2,250			0		1,200

  

Notes Payable
Date		Debit			Credit		Balance
(b)		0			48,600		48,600
(f)		0			12,000		60,600

  

Common Stock
Date		Debit			Credit		Balance
(a)		0			156,000		156,000

  

Dividends
Date		Debit			Credit		Balance
(o)		9,360			0		9,360

      

Engineering Fees Earned
Date		Debit			Credit		Balance
(e)		0			5,700		5,700
(g)		0			12,000		17,700
(i)		0			18,000		35,700

  

Wages Expense
Date		Debit			Credit		Balance
(l)		1,500			0		1,500
(p)		1,500			0		3,000

  

Equipment Rental Expense
Date		Debit			Credit		Balance
(j)		1,200			0		1,200

  

Advertising Expense
Date		Debit			Credit		Balance
(q)		3,000			0		3,000

  

Repairs Expense
Date		Debit			Credit		Balance
(n)		675			0		675

  

3.	Prepare a trial balance as of the end of June. (Be sure to list assets in the order of their liquidity.The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Equity, Revenues, and Expenses. Omit the "$" sign in your response.)

  

SHELTON ENGINEERING Trial Balance June 30
	Debit	Credit
Cash	$ 2,715
Accounts receivable	22,800
Prepaid insurance
Office equipment
Drafting equipment
Building
Land
Accounts payable		$ 1,200
Notes payable		60,600
Common stock		156,000
Dividends	9,360
Engineering fees earned		35,700
Wages expense
Equipment rental expense
Advertising expense
Repairs expense
Totals	$ 253,500	$ 253,500