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

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    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.