a. Jenna Aracel, the owner, invested $185,000 cash, office equipment with a value of $5,300, and $71,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $49,000 for an office by paying $8,100 cash and signing a long-term note payable for $40,900. c The company purchased a portable building with $53,000 cash and moved it onto the land acquired in b. d. The company paid $3,500 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 $9,800 cash. The company purchased $27,000 of additional drafting equipment by paying $10,100 cash and signing a long-term note payable for $16,900. g. The company completed $18,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,400 of additional office equipment on credit. i. The company completed engineering services for $27,000 on credit. j The company received a bill for rent of equipment that was used on a recently completed job. The $1,478 rent cost must be paid within 30 days k. The company collected $9,000 cash in partial payment from the client described in transaction g. The company paid $2,300 cash for wages to m. The company paid $1,400 cash to settle the account payable created in transaction h n. The company paid $1,150 cash for minor maintenance of its drafting equipment. o. The company paid $10,130 cash in dividends. p. The company paid $2,100 cash for wages to a drafting assistant q. The company paid $3,100 cash for advertisements on the Web during June. drafting assistant Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of the end of June Account Title Credit No Tranasaction Debit Cash 185,000 Office equipment 5,300 Drafting equipment 71,000 261,300 2 b Land 49.000 8,100 Cash Notes payable 40,900 Building 3 53,000 c Cash 53,000 Prepaid insurance 4 3.500 Cash 3,500 5 Cash 9,800 Engineering fees earned 9,800 Drafting equipment 6 27,000 Cash 10,100 Notes payable 16,900 Accounts receivable 18,000 7 Engineering fees earned 18,000 Office equipment 8 h 1.400 Accounts payable 1,400 Accounts receivable 27,000 Engineering fees earned 27,000 Equipment rental expense 10 1,478 Accounts payable 1,478 Cash 11 k 9.000 Accounts receivable 9,000 Wages expense 12 2,300 Cash 2,300 Accounts payable 13 1.400 m. Cash 1,400 Repairs expense 14 1,150 Cash 1,150 Dividends 15 10.130 Cash 10,130 Wages expense 16 2,100 Cash 2,100 Advertising expense 17 3,100 Cash 3,100 Post the journal entries from part 1 to the ledger accounts 101: Cash 106: Accounts Receivable Balance Balance Transaction Debit Credit Transaction Debit Credit 108: Prepaid Insurance 163: Office Equipment Transaction Transaction Debit Credit Balance Debit Credit Balance 164: Drafting Equipment 170: Building Transaction Debit Credit Balance Transaction Debit Credit Balance 172: Land 201: Accounts Payable Credit Debit Credit Balance Transaction Debit Balance Transaction 250: Notes Payable 307: Common Stock Transaction Transaction Debit Credit Balance Debit Credit Balance 319: Dividends 402: Engineering Fees Earned Balance Transaction Debit Credit Balance Transaction Debit Credit 601: Wages Expense 602: Equipment Rental Expense Transaction Transaction Debit Credit Balance Debit Credit Balance 603: Advertising Expense 604: Repairs Expense Debit Credit Transaction Credit Balance Transaction Debit Balance Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Debit Credit Totals C a. Jenna Aracel, the owner, invested $185,000 cash, office equipment with a value of $5,300, and $71,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $49,000 for an office by paying $8,100 cash and signing a long-term note payable for $40,900. c The company purchased a portable building with $53,000 cash and moved it onto the land acquired in b. d. The company paid $3,500 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 $9,800 cash. The company purchased $27,000 of additional drafting equipment by paying $10,100 cash and signing a long-term note payable for $16,900. g. The company completed $18,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,400 of additional office equipment on credit. i. The company completed engineering services for $27,000 on credit. j The company received a bill for rent of equipment that was used on a recently completed job. The $1,478 rent cost must be paid within 30 days k. The company collected $9,000 cash in partial payment from the client described in transaction g. The company paid $2,300 cash for wages to m. The company paid $1,400 cash to settle the account payable created in transaction h n. The company paid $1,150 cash for minor maintenance of its drafting equipment. o. The company paid $10,130 cash in dividends. p. The company paid $2,100 cash for wages to a drafting assistant q. The company paid $3,100 cash for advertisements on the Web during June. drafting assistant Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Prepaid Insurance (108); Office Equipment (163); Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); Common Stock (307); Dividends (319); Engineering Fees Earned (402); Wages Expense (601); Equipment Rental Expense (602); Advertising Expense (603); and Repairs Expense (604). 2. Post the journal entries from part 1 to the ledger accounts. 3. Prepare a trial balance as of the end of June Account Title Credit No Tranasaction Debit Cash 185,000 Office equipment 5,300 Drafting equipment 71,000 261,300 2 b Land 49.000 8,100 Cash Notes payable 40,900 Building 3 53,000 c Cash 53,000 Prepaid insurance 4 3.500 Cash 3,500 5 Cash 9,800 Engineering fees earned 9,800 Drafting equipment 6 27,000 Cash 10,100 Notes payable 16,900 Accounts receivable 18,000 7 Engineering fees earned 18,000 Office equipment 8 h 1.400 Accounts payable 1,400 Accounts receivable 27,000 Engineering fees earned 27,000 Equipment rental expense 10 1,478 Accounts payable 1,478 Cash 11 k 9.000 Accounts receivable 9,000 Wages expense 12 2,300 Cash 2,300 Accounts payable 13 1.400 m. Cash 1,400 Repairs expense 14 1,150 Cash 1,150 Dividends 15 10.130 Cash 10,130 Wages expense 16 2,100 Cash 2,100 Advertising expense 17 3,100 Cash 3,100 Post the journal entries from part 1 to the ledger accounts 101: Cash 106: Accounts Receivable Balance Balance Transaction Debit Credit Transaction Debit Credit 108: Prepaid Insurance 163: Office Equipment Transaction Transaction Debit Credit Balance Debit Credit Balance 164: Drafting Equipment 170: Building Transaction Debit Credit Balance Transaction Debit Credit Balance 172: Land 201: Accounts Payable Credit Debit Credit Balance Transaction Debit Balance Transaction 250: Notes Payable 307: Common Stock Transaction Transaction Debit Credit Balance Debit Credit Balance 319: Dividends 402: Engineering Fees Earned Balance Transaction Debit Credit Balance Transaction Debit Credit 601: Wages Expense 602: Equipment Rental Expense Transaction Transaction Debit Credit Balance Debit Credit Balance 603: Advertising Expense 604: Repairs Expense Debit Credit Transaction Credit Balance Transaction Debit Balance Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Debit Credit Totals C