Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $220,000 cash, office equipment with a value of $5,500, and $73,000 of drafting equipment to launch the company. b. The company purchased land worth $51,000 for an office by paying $6,500 cash and signing a long-term note payable for $44,500. c. The company purchased a portable building with $58,000 cash and moved it onto the land acquired in b. d. The company paid $4,800 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 $6,500 cash. f. The company purchased $35,000 of additional drafting equipment by paying $9,300 cash and signing a long-term note payable for $25,700. g. The company completed $16,500 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,750 of additional office equipment on credit. i. The company completed engineering services for $28,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,683 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. 1. The company paid $1,500 cash for wages to a drafting assistant. m. The company paid $1,750 cash to settle the account payable created in transaction h. n. The company paid $1,140 cash for minor maintenance of its drafting equipment. o. Jenna Aracel withdrew $10,350 cash from the company for personal use. p. The company paid $2,300 cash for wages to a drafting assistant. q. The company paid $2,800 cash for advertisements on the Web during June. Required 1 Required 2 Required 3 Post the journal entries from part 1 to the ledger accounts. 101: Cash Debit Credit 106: Accounts Receivable Debit Credit Transaction Balance Transaction Balance 163: Office Equipment 108: Prepaid Insurance Debit Credit Transaction Balance Transaction Debit Credit Balance 164: Drafting Equipment Debit Credit 170: Building Debit Credit Transaction Balance Transaction Balance 172: Land Debit Credit 201: Accounts Payable Debit Credit Transaction Balance Transaction Balance 250: Notes Payable Debit Credit 301: J. Aracel, Capital D ebit Credit Transaction Balance Transaction Balance 302: J. Aracel, Withdrawals Debit Credit 402: Engineering Fees Earned Debit Credit Transaction Balance Transaction Balance 601: Wages Expense Debit Credit 602: Equipment Rental Expense Debit Credit Transaction Balance Transaction Balance 603: Advertising Expense Debit Credit 604: Repairs Expense Debit Credit Transaction Balance Transaction Balance ARACEL EN ARACEL ENGINEERING Trial Balance June 30 Debit Credit Totals 0 $
