Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,600, and $72,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $54,000 for an office by paying $7,000 cash and signing a long-term note payable for $47,000. c. The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. d. The company paid $4,300 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 $8,000 cash. f. The company purchased $29,000 of additional drafting equipment by paying $9,900 cash and signing a long-term note payable for $19,100. g. The company completed $18,500 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,050 of additional office equipment on credit. i. The company completed engineering services for $29,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,396 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. 1. The company paid $1,500 cash for wages to a drafting assistant. m. The company paid $1,050 cash to settle the account payable created in transaction h. n. The company paid $995 cash for minor maintenance of its drafting equipment. o. The company paid $9,080 cash in dividends. p. The company paid $2,000 cash for wages to a drafting assistant. 4. The company paid $3,000 cash for advertisements on the Web during June. 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. Journal entry worksheet Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,600, and $72,000 of drafting equipment to launch the company in exchange for common stock. Note: Enter debits before credits. Tranasaction Account Title Debit Credit a TUO ACCounts Teceivable 108: Prepaid insurance 163: Office equipment 164: Drafting equipment 170: Building Record entry 172: Land View general journal 172: Land 201: Accounts payable 250: Notes payable 307: Common stock 319: Dividends try Ann Account Title 402: Engineering fees earned 601: Wages expense 602: Equipment rental expense 603: Advertising expense y 604: Repairs expense 101: Cash Debit Credit 106: Accounts Receivable Transaction Debit Credit Balance Transaction Balance 108: Prepaid Insurance Transaction Debit Credit 163: Office Equipment Transaction Debit Credit Balance Balance 164: Drafting Equipment Transaction Debit Credit 170: Building Debit Credit Balance Transaction Balance 172: Land Debit Credit 201: Accounts Payable Transaction Debit Credit Transaction Balance Balance 250: Notes Payable Debit Credit Transaction 307: Common Stock Transaction Debit Credit Balance Balance 319: Dividends Debit Credit Transaction 402: Engineering Fees Earned Transaction Debit Credit Balance Balance 601: Wages Expense Transaction Debit Credit 602: Equipment Rental Expense Transaction Debit Credit Balance Balance 603: Advertising Expense Transaction Debit Credit Balance 604: Repairs Expense Transaction Debit Credit Balance Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Debit Credit Totals
