Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 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 $6,300 cash and signing a long-term note payable for $42,700. c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b. d. The company paid $3,000 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 $6,200 cash. f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500. Page 75 g. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,150 of additional office equipment on credit. 1. The company completed engineering services for $22,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days. k. The company collected $7,000 cash in partial payment from the client described in transaction g. 1. The company paid $1,200 cash for wages to a drafting assistant. m. The company paid $1,150 cash to settle the account payable created in transaction h. n. The company paid $925 cash for minor maintenance of its drafting equipment. o. The company paid a $9,480 cash dividend. p. The company paid $1,200 cash for wages to a drafting assistant. q. The company paid $2,500 cash for advertisements on the web during June. Required 1. Prepare general journal entries to record these transactions (use the account titles listed in part 2). 2. Open the following ledger accounts-their account numbers are in parentheses (use the balance column format): 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). Post the journal entries from part 1 to the accounts and enter the balance after each posting. 3. Prepare a trial balance as of the end of June. Check (2) Ending balances: Cash, $22,945; Accounts Receivable, $29,000; Accounts Payable, $1,333 (3) Trial balance totals, $261,733 Date Account Titles and Explan P.R. Debit Credit Accounts Receivable Cash Date Explanatior P.R. a b d e F K ACCOUNT NO. 101 DEBIT CREDIT BALANCE ###### 100,000 6,300 93,700 55,000 38,700 3,000 35,700 6,200 41,900 9,500 32,400 7,000 39,400 1,200 38,200 1,150 37,050 925 36,125 9,480 26,645 - m o q Accounts Receivable Explanation P.R. 1,200 25,445 2,500 22,945 90,255 ACCOUNT NO. 163 DEBIT CREDIT BALANCE 14,000 14,000 22,000 36,000 7,000 29,000 Date a Date Office equipmenACCOUNT NO. _164 Explanatior P.R. DEBIT CREDIT BALANCE 5,000 5,000 1,150 6,150 a Building Explanatior P.R. Date ACCOUNT NO. _170 DEBIT CREDIT BALANCE 55,000 55,000 Land Explanatior P.R. Date ACCOUNT NO. 172 DEBIT CREDIT BALANCE 49,000 49,000 Date Drafting Equipment ACCOUNT NO. 106 Explanation P.R. DEBIT CREDIT BALANCE 60,000 60,000 20,000 80,000 Date Prepaid Insurance 108 Explanatior P.R. DEBIT CREDIT BALANCE 3,000 3,000 Date Accounts Payable ACCOUNT NO. 201 Explanatior P.R. DEBIT CREDIT BALANCE 1,150 1,150 1,333 2,483 1,150 1,333 Date Notes Payable ACCOUNT NO. 250 Explanatior P.R. DEBIT CREDIT BALANCE 42,700 42,700 10,500 53,200 Common Stock Explanatior P.R. Date ACCOUNT NO. _307 DEBIT CREDIT BALANCE ##### 165,000 Dividends Explanation P.R. Date ACCOUNT NO. 319 DEBIT CREDIT BALANCE 9,480 9,480 Date Engineering Fees EarA6&OUNT NO. 402 Explanatior P.R. DEBIT CREDIT BALANCE 6,200 6,200 14,000 20,200 22,000 42,200 Date Wages Expense ACCOUNT NO. _601 Explanatior P.R. DEBIT CREDIT BALANCE 1,200 1,200 1,200 2,400 Date Equipment Rental ACCOUNT NO. _602_ Explanatior P.R. DEBIT CREDIT BALANCE 1,333 1,333 Date Advertising Expense ACCOUNT NO. _603 Explanatior P.R. DEBIT CREDIT BALANCE 2,500 2,500 Date Repairs Expense ACCOUNT NO. _604 Explanatior P.R. DEBIT CREDIT BALANCE 925 925