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 $7,600, and $73,000 of drafting equipment to launch the company

in exchange for common stock.

b.The company purchased land worth $60,000 for an office by paying $6,400

cash and signing a long-term note payable for $53,600.

c.The company purchased a portable building with $58,000 cash and moved it

onto the land acquired in b.

d.The company paid $3,300 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 $7,700 cash.

f.The company purchased $22,000 of additional drafting equipment by paying

$10,700 cash and signing a long-term note payable for $11,300.

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 $26,000 on credit.

j.The company received a bill for rent of equipment that was used on a

recently completed job. The $1,501 rent cost must be paid within 30 days.

k.The company collected $8,000 cash in partial payment from the client

described in transaction g.

l.The company paid $2,200 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 $1,155 cash for minor maintenance of its drafting

equipment.

o.The company paid $9,560 cash in dividends.

p.The company paid $2,200 cash for wages to a drafting assistant.

q.The company paid $4,100 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.