Part 1

a. Cash 101 105,000 Office Equipment 163 Drafting Equipment 164

6,000 45,000 S. Shelton, Capital 301 156,000

Owner invested cash and equipment.

b.

Land

172 54,000 Cash 101 5,400 Note Payable 250

48,600

Purchased land with cash and note payable.

c.

Building
Purchased building.

170

75,000 Cash 75,000 101

d.

Prepaid Insurance Cash 101

108 6,000

6,000

Purchased 18-month insurance policy.

e.

Cash

101 5,700 Engineering Fees Earned

402

5,700

Collected cash for completed work.

f.

Drafting Equipment Cash 101 Note Payable

164 10,500 250

22,500 12,000

Purchased equipment with cash and note payable.

g.

Accounts Receivable 106 Engineering Fees Earned

12,000 402

12,000

Completed services for client.

h.

Office Equipment 163 Accounts Payable201

Purchased equipment on credit.

2,250 2,250

i.

Accounts Receivable 106 Engineering Fees Earned

Billed client for completed work.

18,000 402

18,000

j.

Equipment Rental Expense Accounts Payable201

602

1,200 1,200

Incurred equipment rental expense.

k.

Cash

101 7,200 Accounts Receivable

106

7,200

Collected cash on account.

l. Wages Expense 601 1,500 Cash 101 1,500

Paid assistants wages.

m. Accounts Payable 201 2,250

Cash 101
Paid amount due on account.

2,250

n. Repairs Expense 604 675

Cash
repair of equipment.

101 675

Paid for

o. S. Shelton, Withdrawals

302 9,360 Cash 101 p. Wages Expense 601 1,500 Cash

Paid assistants wages.

9,360

Cash withdrawn for personal use.

101 1,500

q. Advertising Expense 603 3,000 Cash 3,000

Paid for advertising expense.

101

Part 2
Cash Date PR (a) (b) (c) (d) (e) (f) (k) (l) (m) (n) (o) (p) (q) 7,200 1,500 2,250 675 9,360 1,500 3,000 5,700 10,500 Debit 105,000 5,400 75,000 6,000 Credit No. 101 Balance 105,000 99,600 24,600 18,600 24,300 13,800 21,000 19,500 17,250 16,575 7,215 5,715 2,715 S. Shelton, Capital Date PR (a) Debit Credit 156,000 No. 301 Balance 156,000 Notes Payable Date PR (b) (f) Debit Credit 48,600 12,000 No. 250 Balance 48,600 60,600 Accounts Payable Date PR (h) (j) (m) 2,250 Debit Credit 2,250 1,200 No. 201 Balance 2,250 3,450 1,200

Accounts Receivable Date PR (g) (i) (k) Debit 12,000 18,000 7,200 Credit

No. 106 Balance 12,000 30,000 22,800

S. Shelton, Withdrawals Date PR (o) Debit 9,360 Credit

No. 302 Balance 9,360

Engineering Fees Earned Date PR Debit Credit 5,700 12,000 18,000

No. 402 Balance 5,700 17,700 35,700

Prepaid Insurance Date PR (d) Debit 6,000 Credit

No. 108 Balance 6,000

(e) (g) (i)

Office Equipment Date PR (a) (h) Debit 6,000 2,250 Credit

No. 163 Balance 6,000 8,250

Wages Expense Date PR (l) (p) Debit 1,500 1,500 Credit

No. 601 Balance 1,500 3,000

Drafting Equipment Date PR (a) (f) Debit 45,000 22,500 Credit

No. 164 Balance 45,000 67,500

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

No. 602 Balance 1,200

Building Date PR (c) Debit 75,000 Credit

No. 170 Balance 75,000

Advertising Expense Date PR (q) Debit 3,000 Credit

No. 603 Balance 3,000

Land Date PR (b) Debit 54,000 Credit

No. 172 Balance 54,000

Repairs Expense Date PR (n) Debit 675 Credit

No. 604 Balance 675

Part 3

SHELTON ENGINEERING

Trial Balance June 30 Debit Cash $ 2,715 Accounts receivable 22,800 Prepaid insurance 6,000 Office equipment 8,250 Drafting equipment 67,500 Building 75,000 Land 54,000 Accounts payable $ Notes payable 60,600 S. Shelton, Capital 156,000 S. Shelton, Withdrawals Engineering fees earned 35,700 Wages expense 3,000 Equipment rental expense 1,200 Advertising expense 3,000 Repairs expense 675 Totals $253,500 $253,500 9,360 1,200 Credit