Problem 2-2A Preparing and posting journal entries; preparing a trial balance LO C3, C4, A1, P1, P2 Check my work es Aracel Engineering completed the following transactions in the month of June. a. Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42,700. c. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b. d. The company paid $3,000 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 $6,200 cash. f. The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500 9. The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,150 of additional office equipment on credit. 1. The company completed engineering services for $22,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days k. The company collected $7,000 cash in partial payment from the client described in transaction g. I. The company paid $1,200 cash for wages to a drafting assistant m. The company paid $1,150 cash to settle the account payable created in transaction h. n. The company paid $925 cash for minor maintenance of its drafting equipment. o. The company paid $9,480 cash in dividends. p. The company paid $1,200 cash for wages to a drafting assistant 9. The company paid $2,500 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. Complete this question by entering your answers in the tabs below. 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 (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). Show less Debit Credit No Tranasaction Account Title 100,000 1 a Cash 49,000 2 b Land 3 55,000 Building 4 3,000 d Prepaid insurance 5 e Cash 6,200 6 f Drafting equipment 20,000 7 9 Accounts receivable 14,000 8 h Office equipment 1,150 9 i Accounts receivable 22,000 10 Equipment rental expense 1,333 11 Cash 7,000 12 1 Wages expense 1,200 13 E Accounts payable 1,150 14 n Repairs expense 925 15 0 Dividends 9,480 16 Wages expense 1,200 17 9 Advertising expense 2,500 Check Post the journal entries from part 1 to the ledger accounts. Transaction Transaction 106: Accounts Receivable Debit Credit 22,000 Balance 101: Cash Debit Credit 100,000 6,200 7.000 a 22,000 Balance 100,000 106,200 113,200 e. k Ch Transaction 108: Prepaid Insurance Debit Credit 3,000 Transaction 163: Office Equipment Debit Credit 1,150 Balance 3,000 Balance Th. 1,150 164: Drafting Equipment Debit Credit Transaction Transaction Balance 20,000 170: Building Debit Credit 55,000 Balance 55,000 20,000 Transaction 172: Land Debit Credit 49,000 Transaction Balance 49,000 201: Accounts Payable Debit Credit 1,150 b Balance (1.150) m. CR 250: Notes Payable Debit Credit 307: Common Stock Debit Credit Transaction Balance Transaction Balance Transaction 319: Dividends Debit Credit 9,480 402: Engineering Fees Earned Debit Credit Transaction Balance Balance 9,480 0 Transaction 601: Wages Expense Debit Credit 1,200 1,200 Transaction Balance 1,200 2,400 602: Equipment Rental Expense Debit Credit 1,333 Balance 1,333 p Transaction 603: Advertising Expense Debit Credit 2,500 Balance Transaction n. 604: Repairs Expense Debit Credit 925 9 2,500 Balance 925 Prepare a trial balance as of the end of June. Trial Balance June 30 Debit Credit $ $ 22,945 29,000 3,000 6,150 55,000 Cash Accounts receivable Prepaid insurance Office equipment Drafting equipment Building Land Accounts payable Notes payable Common stock Dividends Engineering fees earned Wages expense Equipment rental expense Advertising expense Repairs expense Totals 42,200 2,400 2,500 925 121,920 $ $ 42,200