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 $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 g. The comp Weple i. 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 sted $14,000 of engineering services for a client. This amount is to be received in 30 days. es h. The company purchased $1,150 of additional office equipment on credit. 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 q. 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. 601: Wages Expense Debit 602: Equipment Rental Expense ran Credit rar Debit Credit Balance 1,200 1,333 2,400 603: Advertising Expense 604: Repairs Expense Debit Transaction Debit Credit Balance Transaction Credit Balance 2,500 2,500 925