Reference no: EM133234330

Aracel Engineering completed the following transactions in the month of June.

1. J. Aracel, the owner, invested $155,000 cash, office equipment with a value of $5,300, and $64,000 of drafting equipment to launch the company.
2. The company purchased land worth $53,000 for an office by paying $7,400 cash and signing a note payable for $45,600.
3. The company purchased a portable building with $55,000 cash and moved it onto the land acquired in b.
4. The company paid $3,000 cash for the premium on an 18-month insurance policy.
5. The company provided services to a client and collected $6,200 cash.
6. The company purchased $33,000 of additional drafting equipment by paying $9,800 cash and signing a note payable for $23,200.
7. The company completed $20,000 of services for a client. This amount is to be received in 30 days.
8. The company purchased $1,000 of additional office equipment on credit.
9. The company completed $29,000 of services for a customer on credit.
10. The company purchased $1,625 of TV advertising on credit.
11. The company collected $7,000 cash in partial payment from the client described in transaction g.
12. The company paid $1,900 cash for employee wages.
13. The company paid $1,000 cash to settle the account payable created in transaction h.
14. The company paid $1,085 cash for repairs.
15. J. Aracel withdrew $9,390 cash from the company for personal use.
16. The company paid $2,000 cash for employee wages.
17. The company paid $2,900 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); J. Aracel, Capital (301); J. Aracel, Withdrawals (302); 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 trial balance as of the end of June.