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J. Aracel, the owner, invested $215,000 cash, office equipment with a value of $5,100, and $73,000 of drafting equipment to launch the company in exchange

  1. J. Aracel, the owner, invested $215,000 cash, office equipment with a value of $5,100, and $73,000 of drafting equipment to launch the company in exchange for common stock.
  2. The company purchased land worth $51,000 for an office by paying $6,100 cash and signing a note payable for $44,900.
  3. The company purchased a portable building with $53,000 cash and moved it onto the land acquired in b.
  4. The company paid $2,800 cash for the premium on an 18-month insurance policy.
  5. The company provided services to a client and collected $9,800 cash.
  6. The company purchased $31,000 of additional drafting equipment by paying $9,800 cash and signing a note payable for $21,200.
  7. The company completed $17,000 of services for a client. This amount is to be received in 30 days.
  8. The company purchased $1,150 of additional office equipment on credit.
  9. The company completed $23,000 of services for a customer on credit.
  10. The company purchased $1,361 of TV advertising on credit.
  11. The company collected $7,000 cash in partial payment from the client described in transaction g.
  12. The company paid $2,100 cash for employee wages.
  13. The company paid $1,150 cash to settle the account payable created in transaction h.
  14. The company paid $1,165 cash for repairs.
  15. The company paid a $9,420 cash dividend.
  16. The company paid $1,200 cash for employee wages.
  17. 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); Services Revenue (403); Wages Expense (601); 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.

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