Problem 2-2A (Static) Preparing and posting journal entries; preparing a trial balance LO A1, P1 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 provided services to 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 g. The company completed $14,000 of 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 $22,000 of services for a customer on credit j. The company purchased $1,333 of TV advertising on credit. k. The company collected $7,000 cash in partial payment from the client described in transaction g. 1. The company paid $1.200 cash for employee wages. m. The company paid $1150 cash to settle the account payable created in transaction h. n. The company paid $925 cash for repairs. o. The company paid a $9.480 cash dividend. p. The company paid $1,200 cash for employee wages. 4. 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). 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. Required 1 Required 2 Required 3 Post the journal entries from part 1 to the ledger accounts. 101: Cash Transaction Debit Credit Balance Transaction 106: Accounts Recalvable Debit Credit Balance Transaction 108. Prepaid Insurance Debit Credit Balance Transaction 163: Office Equipment Debit Credit Balance Transaction 164. Drafting Equipment Debit Credit Balance Transaction 170: Building Debit Credit Balance Transaction 172: Land Debit Credit Balance Transaction 201: Accounts Payable Debit Credit Balance 172: Land Transaction Debit Credit Balance 201: Accounts Payable Debit Credit Transaction Balance Transaction 250: Notes Payable Debit Credit Balance Transaction 307: Common Stock Debit Credit Balance Transaction 319: Dividends Debit Credit 403: Services Revenue Balance Transaction Debit Credit Balance Transaction 601: Wages Expense Debit Credit Balance Transaction 603: Advertising Expense Debit Credit Balance Transaction 604: Repairs Expense Debit Credit Balance
