1. On June 1, 2021, Conner Company, a new firm, paid $16,800 rent in advance for a seven-month period. The $16,800 was debited to the Prepaid Rent account. 2. On June 1, 2021, the firm bought supplies for $12,580. The $12,580 was debited to the Supplies account. An inventory of supplies at the end of June showed that items costing $9,275 were on hand. 3. On June 1, 2021, the firm bought equipment costing $108,000. The equipment has an expected useful life of 9 years and no salvage value. The firm will use the straight-line method of depreciation. Requirement General Journal General Ledger Trial Balance Income Statement St Owner Equity Balance Sheet Impact on Income Show less (43% of available points) The adjusting entry process is critical to the accuracy of financial statements. We know that every adjusting entry affects one income statement account, one balance sheet account, but never cash. For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) Adjusting entry related to: Rent Supplies Depreciation Show less ------Account affecting the------ Income Statement Balance Sheet Impact on net income Rent expense Supplies expense Prepaid rent Supplies $ 2,400 3,305 Depreciation expense - equipment Accumulated depreciation - equipment 1,000 Total impact on income due to adjustments: Net income before adjustments $ 6,705 Net income after adjustments