Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $205,000 cash, office equipment with a value of $6,900, and $66,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $59,000 for an office by paying $7,700 cash and signing a long-term note payable for $51,300. c. The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. d. The company paid $3,600 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 $7,400 cash. f. The company purchased $26,000 of additional drafting equipment by paying $10,000 cash and signing a long-term note payable for $16,000. 9. The company completed $18,500 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $2,000 of additional office equipment on credit I. 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 $1,532 rent cost must be paid within 30 days. k. The company collected $6,000 cash in partial payment from the client described in transaction 9 1. The company paid $2,100 cash for wages to a drafting assistant m. The company paid $2,000 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 a $10,550 cash dividend. p. The company paid $1,800 cash for wages to a drafting assistant. 4. The company paid $4,200 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. Required 1 Required 2 Required 3 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). Show less View transaction list Journal entry worksheet
