Aracel Engineering completed the following transactions in the month of June. Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,500, and $62,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $8,800 cash and signing a long-term note payable for $44,200. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,200 cash for the premium on an 18-month insurance policy. The company completed and delivered a set of plans for a client and collected $9,700 cash. The company purchased $35,000 of additional drafting equipment by paying $10,300 cash and signing a long-term note payable for $24,700. The company completed $16,500 of engineering services for a client. This amount is to be received in 30 days. The company purchased $1,050 of additional office equipment on credit. The company completed engineering services for $28,000 on credit. The company received a bill for rent of equipment that was used on a recently completed job. The $1,604 rent cost must be paid within 30 days. The company collected $8,000 cash in partial payment from the client described in transaction g. The company paid $1,400 cash for wages to a drafting assistant. The company paid $1,050 cash to settle the account payable created in transaction h. The company paid $1,195 cash for minor maintenance of its drafting equipment. Jenna Aracel withdrew $9,600 cash from the company for personal use. The company paid $1,100 cash for wages to a drafting assistant. The company paid $3,200 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); 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.

Aracel Engineering completed the following transactions in the month of June. Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,500, and $62,000 of drafting equipment to launch the company. The company purchased land worth $53,000 for an office by paying $8,800 cash and signing a long-term note payable for $44,200. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. The company paid $2,200 cash for the premium on an 18-month insurance policy. The company completed and delivered a set of plans for a client and collected $9,700 cash. The company purchased $35,000 of additional drafting equipment by paying $10,300 cash and signing a long-term note payable for $24,700. The company completed $16,500 of engineering services for a client. This amount is to be received in 30 days. The company purchased $1,050 of additional office equipment on credit. The company completed engineering services for $28,000 on credit. The company received a bill for rent of equipment that was used on a recently completed job. The $1,604 rent cost must be paid within 30 days. The company collected $8,000 cash in partial payment from the client described in transaction g. The company paid $1,400 cash for wages to a drafting assistant. The company paid $1,050 cash to settle the account payable created in transaction h. The company paid $1,195 cash for minor maintenance of its drafting equipment. Jenna Aracel withdrew $9,600 cash from the company for personal use. The company paid $1,100 cash for wages to a drafting assistant. The company paid $3,200 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); 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.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter4: Posting To A General Ledger

Section4.2: Posting From A General Journal To A General Ledger And Proving Cash

Problem 1WT

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

Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,500, and $62,000 of drafting equipment to launch the company.
The company purchased land worth $53,000 for an office by paying $8,800 cash and signing a long-term note payable for $44,200.
The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b.
The company paid $2,200 cash for the premium on an 18-month insurance policy.
The company completed and delivered a set of plans for a client and collected $9,700 cash.
The company purchased $35,000 of additional drafting equipment by paying $10,300 cash and signing a long-term note payable for $24,700.
The company completed $16,500 of engineering services for a client. This amount is to be received in 30 days.
The company purchased $1,050 of additional office equipment on credit.
The company completed engineering services for $28,000 on credit.
The company received a bill for rent of equipment that was used on a recently completed job. The $1,604 rent cost must be paid within 30 days.
The company collected $8,000 cash in partial payment from the client described in transaction g.
The company paid $1,400 cash for wages to a drafting assistant.
The company paid $1,050 cash to settle the account payable created in transaction h.
The company paid $1,195 cash for minor maintenance of its drafting equipment.
Jenna Aracel withdrew $9,600 cash from the company for personal use.
The company paid $1,100 cash for wages to a drafting assistant.
The company paid $3,200 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); 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 Entries: Educational Overview

Welcome to the educational tutorial on recording general journal entries. In this session, we will learn how to use various account titles to record three specific transactions using a journal entry worksheet.

#### **Account Titles Available**

The following account titles are available for recording transactions:

- 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)
- Engineering Fees Earned (402)
- Wages Expense (601)
- Equipment Rental Expense (602)
- Advertising Expense (603)
- Repairs Expense (604)

#### **Required Tasks**

You are required to prepare general journal entries to record three transactions.

#### **Transactions Detail and Journal Entry Worksheet**

The provided tool allows us to view the transaction list and record the corresponding journal entries. Below is a detailed example of how to make an entry using the journal entry worksheet.

##### **Example Transaction 1**

**Transaction Description:**
- Jenna Aracel, the owner, invested $170,000 cash, office equipment with a value of $8,500, and $62,000 of drafting equipment to launch the company.

**Note:** Enter debits before credits.

**Journal Entry Worksheet:**

| Transaction | Account Title | Debit | Credit |
|-------------|---------------------------|-----------|-----------|
| a | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |

You can input the required information in the worksheet using the following buttons:
- **Record entry**: This will save the current journal entry.
- **Clear entry**: This will clear the current information entered, allowing you to start over.
- **View general journal**: This feature lets you review all journal entries recorded so far.

#### **Navigating the Worksheet**

Use the navigation arrows to switch between different transactions and pages in the journal entry worksheet. The transactions are listed sequentially, and you can simply click on the transaction number to move back and forth between them.

This educational exercise aims to provide hands-on

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