Problem 2-2A (Algo) Preparing and posting journal entries; preparing a trial balance LO A1, P1 Aracel Engineering completed the following transactions in the month of June. a. J. Aracel, the owner, invested $160,000 cash, office equipment with a value of $9,200, and $7,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $51,000 for an office by paying $6,700 cash and signing a note payable for $44,300. c. The company purchased a portable building with $54,000 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 provided services to a client and collected $9,900 cash. f. The company purchased $23,000 of additional drafting equipment by paying $10,500 cash and signing a note payable for $12,500. g. The company completed $13,000 of services for a client. This amount is to be received in 30 days. h. The company purchased $1,700 of additional office equipment on credit. i. The company completed $27,000 of services for a customer on credit. j. The company purchased $1,674 of TV advertising on credit. k. The company collected $6,000 cash in partial payment from the client described in transaction g. 1. The company paid $1,400 cash for employee wages. m. The company paid $1,700 cash to settle the account payable created in transaction h. n. The company paid $960 cash for repairs. o. The company paid a $10,520 cash dividend: p. The company paid $1,200 cash for employee wages. q. The company paid $3,900 cash for advertisements on the Web during June. 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. Complete this question by entering your answers in the tabs below. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Recoivable (106); Prepaid Insurance (108): Office Equipment (163); Drafting Equipment (164); Bullding (170); Land (172); Accounts Payable (201): Notes Dayable (250); Common Stock (307); Dividends (319); Services Revenue (403); Wages Expense (601); Advertising Expense (603); and Repairn Expense (604). Journal entry worksheet
