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 $195,000 cash, office equipment with a value of $8,700, and $69,000 of drafting equipment to launch the company in exchange for common stock b. The company purchased land worth $57,000 for an office by paying $7700 cash and signing a long-term note payable for $49.300. c. The company purchased a portable building with $59.000 cash and moved it onto the land acquired in b. d. The company paid $4.900 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 $8,300 cash. f. The company purchased $33,000 of additional drafting equipment by paying $9,800 cash and signing a long-term note payable for $23,200. g. The company completed $14.00 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1.350 of additional office equipment on credit. i. The company completed engineering services for $29.000 on credit. J. The company received a bill for rent of equipment that was used on a recently completed job. The $1,500 rent cost must be paid within 30 days. k. The company collected $6,000 cash in partial payment from the client described in transaction g. 1. The company paid $1.900 cash for wages to a crafting assistant m. The company paid $1,350 cash to settle the account payable created in transaction h. n. The company paid $1,195 cash for minor maintenance of its drafting equipment o. The company paid a $9,230 cash dividend. p. The company paid $1,600 cash for wages to a drafting assistant 4. The company paid $4,300 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. Journal entry worksheet Jenna Aracel, the owner, invested $195,000 cash, office equipment with a value of $8,700, and $69,000 of drafting equipment to launch the company in exchange for common stock. Note: Enter debits before credits. Tranasaction "Account Title Debit Credit a Record entry Clear entry View general journal Required 2 Post the journal entries from part 1 to the ledger accounts. 101: Cash Debit Credit Transaction 106: Accounts Receivable Credit Balance Transaction Debit Balance 108: Prepaid Insurance Debit Credit Transaction 163: Office Equipment Debit Credit Balance Transaction Balance 164: Drafting Equipment Debit Credit Transaction 170: Building Debit Credit Balance Transaction Balance Required 1 Required 2 Required 3 Prepare a trial balance as of the end of June. ARACEL ENGINEERING Trial Balance June 30 Debit Credit Totals Doquired 2
