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 $30.$

Transaction Analysis Template

Income Statement

Balance Sheet