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Dole Carpet Cleaners ended its first month of operations on June 3 0 . Monthly financial statements will be prepared. The unadjusted account balances are

Dole Carpet Cleaners ended its first month of operations on June 30. Monthly financial statements will be prepared. The unadjusted account balances are as follows:
DOLE CARPET CLEANERS
Unadjusted Balances
June 30
Cash $1,180
Accounts receivable 450
Prepaid rent 3,100
Supplies 2,520
Equipment 4,440
Accounts payable 760
Common stock 2,500
Retained earnings (June 1)5,000
Dividends 200
Service fees earned 4,650
Wages expense 1,020
The following information is also available:
1. The balance in Prepaid Rent was the amount paid on June 1 for the first 4 months rent.
2. Supplies on hand at June 30 were $820.
3. The equipment, purchased June 1, has an estimated life of 5 years. The depreciation for the period has already been recorded for you in the TAT.
4. Unpaid wages at June 30 were $210.
5. Utility services used during June were estimated at $300. A bill is expected early in July.
6. Fees earned for services performed but not yet billed on June 30 were $380.
The firm uses the account Fees Receivable to reflect amounts due but not yet billed.
a. Determine the financial statement effect of the adjustments needed at June 30 using the
Transaction Analysis Template.
b. Prepare the income statement for the month of June and balance sheet as of June 30.

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