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 $155,000 cash, office equipment with a value of $9,500, and $62,000 of drafting equipment to launch the company in exchange for common stock. b. The company purchased land worth $53,000 for an office by paying $6,900 cash and signing a long-term note payable for $46,100. c. The company purchased a portable building with $56,000 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 $9,400 cash. f. The company purchased $21,000 of additional drafting equipment by paying $11,100 cash and signing a long-term note payable for $9,900. g. The company completed $16,500 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. i. The company completed engineering services for $28,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,562 rent cost must be paid within 30 days. k. The company collected $8,000 cash in partial payment from the client described in transaction g. 1. The company paid $1,100 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 $1,155 cash for minor maintenance of its drafting equipment. o. The company paid a $10,970 cash dividend. p. The company paid $1,200 cash for wages to a drafting assistant. q. The company paid $2,700 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. transaction is Journal entry worksheet Jenna Aracel, the owner, invested $155,000 cash, office equipment with a value of $9,500, and $62,000 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 ARACEL ENGINEERING Trial Balance June 30 Debit Credit Totals $ $ 0 Required information Problem 3-3A Preparing adjusting entries, adjusted trial balance, and financial statements LO P1, P2, P3, P4, P5, P6 [The following information applies to the questions displayed below.] Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31. Additional Information Items a. An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. b. An inventory count shows that teaching supplies costing $2,318 are available at year-end. C. Annual depreciation on the equipment is $10,698. d. Annual depreciation on the professional library is $5,349. e. On September 1, WTI agreed to do five courses for a client for $2,800 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $14,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees. f. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $6,153 of the tuition has been earned by WTI. g. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. h. The balance in the Prepaid Rent account represents rent for December. WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31 Credit Debit $ 27,396 0 10,536 15,806 2,108 31,610 $ 9,484 104,000 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation-Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expense-Professional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Teaching supplies expense Advertising expense Utilities expense Totals 16,861 24,000 0 14,000 32,787 76,000 42,149 107,477 40,040 0 0 50,579 0 23,188 0 7,376 5,901 $ 320,649 $320,649 Required: 1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end. View transaction list Journal entry worksheet An analysis of WTI's insurance policies shows that $2,674 of coverage has expired. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Problem 3-3A Part 2 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. Cash Equipment Unadj. Bal. Unadj. Bal. Accounts Receivable Accumulated Depreciation-Equipment Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Teaching Supplies Accounts Payable Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Prepaid Insurance Salaries Payable Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Prepaid Rent Unearned Training Fees Unadj. Bal. Unadj. Bal. Professional Library Common stock Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Retained earnings Accumulated DepreciationProfessional Library Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Tuition Fees Earned Dividends Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Training Fees Earned Rent Expense Unadj. Bal. Unadj. Bal. Depreciation Expense-Professional Library Teaching Supplies Expense Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. Depreciation Expense-Equipment Advertising Expense Unadj. Bal. Unadj. Bal. Adj. Bal. Adj. Bal. 0 Salaries Expense Utilities Expense Unadj. Bal. Unadj. Bal. Adj. Bal. 0 Adj. Bal. 0 Insurance Unadj. Bal. Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciationProfessional library Equipment Accumulated depreciation Equipment Accounts payable Salaries payable Unearned training fees Common stock Retained earnings Dividends Tuition fees earned Training fees earned Depreciation expenseProfessional library Depreciation expense-Equipment Salaries expense Insurance expense Rent expense 3-a. Prepare Wells Technical Institute's income statement for the year. 3-b. Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $76,000 on December 31 of the prior year. 3-c. Prepare Wells Technical Institute's balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Req Req 3B Req 3C Prepare Wells Technical Institute's income statement for the year. WELLS TECHNICAL INSTITUTE Income Statement For Year Ended December 31 $ 0 Prepare Wells Technical Institute's statement of retained earnings for the year. The Retained Earnings account balance was $76,000 on December 31 of the prior year. WELLS TECHNICAL INSTITUTE Statement of Retained Earnings For Year Ended December 31 Retained earnings, December 31 prior year end 0 Retained earnings, December 31 current year end $