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 $200,000 cash, office equipment with a value of $8,700, and $72,000 of drafting equipment to launch the company b. The company purchased land worth $57000 for an office by paying $8.900 cash and signing a long-term note payable for $48,100 c. The company purchased a portable building with $52.000 cash and moved it onto the land acquired in b. d. The company paid $4,000 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 $7500 cash 1. The company purchased $31,000 of additional drafting equipment by paying $9.700 cash and signing a long term note payable for $21,300 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 $1.200 of additional office equipment on credit. 1. The company completed engineering services for $22,000 on credit - The company received a bill for rent of equipment that was used on a recently completed job. The $1,563 rent cost must be paid within 30 days k. The company collected $9,000 cash in partial payment from the client described in transaction g. 1. The company paid $1.200 cash for wages to a drafting assistant m. The company paid $1,200 cash to settle the account payable created in transaction h. n. The company paid $950 cash for minor maintenance of its drafting equipment 0. Jenna Aracel withdrew $10,170 cash from the company for personal use p. The company paid $1600 cash for wages to a crafting assistant 9. The company paid $2,600 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 1250), J Aracel, Capital (301), J. Aracel Withdrawals (302): 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 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 (105): Office Equipment (163), Drafting Equipment (164); Building (170); Land (172); Accounts Payable (201); Notes Payable (250); ). Aracel, Capital (301); ). Aracel, Withdrawals (302); 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 1 2 3 5 6 7 8 17 > Jenna Aracel, the owner, invested $200,000 cash, office equipment with a value of $8,700, and $72,000 of drafting equipment to launch the company Note: Enter debits before credits Transaction Account Title Debit Credit
