Aracel Engineering completed the following transactions in the month of June.

a.Jenna Aracel, the owner, invested $190,000 cash, office equipment with a value of $8,000, and $66,000 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 $59,000 cash and moved it onto the land acquired in b.

d.The company paid $3,200 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 $9,000 cash.

f.The company purchased $28,000 of additional drafting equipment by paying $11,200 cash and signing a long-term note payable for $16,800.

g.The company completed $14,500 of engineering services for a client. This amount is to be received in 30 days.

h.The company purchased $1,100 of additional office equipment on credit.

I.The company completed engineering services for $24,000 on credit.

j.The company received a bill for rent of equipment that was used on a recently completed job. The $1,468 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 $2,000 cash for wages to a drafting assistant.

m.The company paid $1,100 cash to settle the account payable created in transaction h.

n.The company paid $1,110 cash for minor maintenance of its drafting equipment.

o.The company paid $10,160 cash in dividends.

p.The company paid $1,500 cash for wages to a drafting assistant.

q.The company paid $2,800 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.