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Shelton Engineering: journalize entries, post T-accts & TB

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

a. invest $105000 cash, office equipment value $6000, $45000 of drafting equipment to launch business.
b. purchased land worth $54000 for an office by paying $5400 cash and signing a long-term note payable for $48600.
c. purchased a portable building with $75000 cash moved it onto the land acquired in B.
d. Paid $6000 cash for insurance policy.
e. collected $5700 cash from clients.
f. purchased $22500 of equipment by paying $10500 cash and signing a long-term note payable for $12000.
g. completed $12000 services for client. Amount is to be received in 30 days.
h. purchased $2250 of additional office equip. on credit.
i. completed services for $18000 on credit.
j. received bill for rent of equip. for $1200. must be paid in 30 days.
k. collected $7200 cash from client in G.
l. paid $1500 cash for assistant.
m. paid $2250 cash to settle the accounts payable created in transaction H.
n. paid $675 cash for minor repairs.
o. Shelton withdrew $9360 cash.
p. paid $1500 cash for assistant.
q. paid $3000 cash for advertisements.

Prepare journal entries to record transactions
Post to T-accounts
Prepare a trial balance

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Solution Preview

Journal Entries

Debit Credit

Cash 105,000
Office equipment 6,000
Drafting equipment 45,000
Owner's capital 156,000
To record investment in business

Land 54,000
Cash 5,400
Note payable 48,600
To record purchase of land

Building 75,000
Cash 75,000
To record purchase of building

Prepaid insurance 6,000
Cash ...

Solution Summary

The solution presents journalize entries in good form for Shelton Engineering for June. T-accounts are posted and a trial balance is prepared.