Problem 2-2A

General Journal Entries

Date Account Titles Debit Credit
June 1 Cash 100,000
Office Equipment 5,000
Drafting Equipment 60,000
J. Aracel Capital 165,000
June 2 Land 49,000
Cash 6,300
Notes Payable 42,700
June 3 Building 55,000
Cash 55,000
June 4 Prepaid Insurance 3,000
Cash 3,000
June 5 Cash 6,200
Engineering Fees Earned 6,200
June 6 Drafting Equipment 20,000
Cash 9,500
Notes Payable 10,500
June 7 Accounts Receivable 14,000
Engineering Fees Earned 14,000
June 8 Office Equipment 1,150
Accounts Payable 1,150
June 9 Engineering Fees Earned 22,000
Accounts Receivable 22,000
June 10 Equipment Rental Expense 1,333
Accounts Payable 1,333
June 11 Cash 7,000
Accounts Receivable 7,000
June 12 Wages Expense 1,200
Cash 1,200
June 13 Accounts Payable 1,150
Cash 1,150
June 14 Repairs Expense 925
Cash 925
June 15 J. Aracel Withdrawals 9,480
Cash 9,480
June 16 Advertising Expense
Cash 2,500

Ledger Accounts
 Account Debit Credit Balance
Cash (101) 100000 55000 22945
6300 3000
6200
9500
7000
1200
1150
925
9480
2500
Accounts Receivable (106) 14000 29000
22000 7000
Prepaid Insurance (108) 3000 3000
Office Equipment (163) 5000 1150 1150
Drafting Equipment (164) 60000 20000

Building (170) 55000 55000

Land (172) 49000 49000
Accounts Payable (201) 1150 1333
42700
1333
Notes Payable (250) 10500 10500
42700
J. Aracel Capital (301) 165000 165000
J. Aracel Withdrawals (302) 9480 9480
Engineering Fees Earned (402 6200 6200
14000
22000
Wages Expense (601) 1200 1200
Equipment Rental Expense (60 1333 1333
Advertising Expense (603) 2500 2500
Repairs Expense (604) 925 925

Trial Balance as of June 30

Account Debit Credit
Cash 22945
Accounts Receivable 29000
Prepaid Insurance 3000
Office Equipment 5000
Drafting Equipment 60000
Building 55000
Land 49000
Accounts Payable 1333
Notes Payable 10500
J. Aracel Capital 165000
J. Aracel Withdrawals 9480
Engineering Fees Earned 42200
Wages Expense 1200
Equipment Rental Expense 1333
Advertising Expense 2500
Repairs Expense 925
Total 239383 219033

Problem 2-3A
General Journal Entries
Date Account Titles Debit Credit
Mar. 1 Cash 150000
Office Equipment 22000
D. Brooks Capital 172000
Mar. 2 Prepaid Rent 6000
Cash 6000
Mar. 3 Office Equipment 3000
Office Supplies 1200
Accounts Payable 4200
Mar. 6 Cash 4000
Services Revenue 4000
Mar. 9 Accounts Receivable 7500
Services Revenue 7500
Mar. 12 Accounts Payable 4200
Cash 4200
Mar. 19 Prepaid Insurance 5000
Cash 5000
Mar. 22 Cash 3500
Accounts Receivable 3500
Mar. 25 Accounts Receivable 3820
Services Revenue 3820
Mar. 29 D. Brooks Withdrawals 5100
Cash 5100
Mar. 30 Office Supplies 600
Accounts Payable 600
Mar. 31 Utilities Expense 500
 Cash 500

Ledger Accounts
Account Debit Credit Balance
Cash (101) 150000 6000 136700
4000
4200
5000
3500
5100
500
Accounts Receivable (106) 7500 7820
3500
3820
Office Supplies (124) 1200 600 600
Prepaid Insurance (128) 5000 5000
Prepaid Rent (131) 6000 6000
Office Equipment (163) 22000 3000 25000
Accounts Payable (201) 4200 600
600
D. Brooks Capital (301) 172000 172000
D. Brooks Withdrawals (302) 5100 5100
Services Revenue (403) 4000 4000
7500
3820
Utilities Expense (690) 500 500

Trial Balance as of March 31

Account Debit Credit
Cash 136700
Accounts Receivable 7820
Office Supplies 600
Prepaid Insurance 5000
Prepaid Rent 6000
Office Equipment 25000
Accounts Payable 600
D. Brooks Capital 172000
D. Brooks Withdrawals 5100
Services Revenue 15320
Utilities Expense 500
Total 186720 187920
Problem 2-5A

Balance Sheets
a. Balance Sheet for 2018

Nettle Distribution
Balance Sheet
For period ended December 31 2018

Assets Amount ()
Current Assets
Cash 64,300
Accounts Receivable 26,240
Office Supplies 31,600
Total Current Assets 93,700
Non-Current Assets
Office Equipment 44,000
Trucks 1480
Total Non-Current Assets 1920
Total Assets 285700000000000

Liabilities and Equity Amount ()

Liabilities
Accounts Payable 3500
Note Payable 0
Total Liabilities 3500
Equity
Total Equity 282200
Total Liabilities and Equity 285700

Balance Sheet for 2019

Nettle Distribution
Balance Sheet
For period ended December 31 2019

Assets Amount ()
Current Assets
Cash 15640
Accounts Receivable 1910
Office Supplies 1960
Total Current Assets 3670
Non-Current Assets
Office Equipment 4400
Trucks 15700
Building 8000
Land 6000
Total Non-Current Assets 3410
Total Assets 377700

Liabilities and Equity Amount ()

Liabilities
Accounts Payable 33500
Note Payable 40000
Total Liabilities 73500
Equity
Total Equity 30420
Total Liabilities and Equity 377700

Net Income for 2019

FR=304200−282200−35000+19000=6000

Net Income for 2019 = 6000

Debt Ratio for 2019

Debt Ratio=(37770073500​)×100≈19.5%