er 3 Homework Mastery Problem 1 Print Saved L Martin, opened a business called Martin Engineering and recorded the following transactions in its first month of operations. June 1 L. Martin, the owner, invested $122,000 cash, office equipment with a value of $10,500, and $71,000 of drafting equipment to launch the company. June 2 The company purchased land worth $54,500 for an office by paying $14,000 cash and signing a note payable for $40,500. June 2 The company purchased a portable building with $49,500 cash and moved it onto the land acquired on June 2. June 2 The company paid $6,300 cash for the premium on a 15-month insurance policy. June 7 The company completed and delivered a set of plans for a client and collected $10,600 cash. June 12 The company purchased $26,600 of additional drafting equipment by paying $15,000 cash and signing a payable for $11,600. June 14 The company completed $22,800 of engineering services for a client. This amount is to be received in 30 days. June 15 The company purchased $1,700 of additional office equipment on credit. June 17 The company completed engineering services for $24,200 on credit. June 18 The company received a bill for rent of equipment that was used on a recently completed job. The $1,850 rent cost must be paid within 30 days. June 20 The company collected $11,400 cash in partial payment from the client billed on June 14. June 21 The company paid $1,400 cash for wages to a drafting assistant. June 23 The company paid $1,700 cash to settle the account payable created on June 15. June 24 The company paid $1,200 cash for repairs. June 26 L. Martin withdrew $9,700 cash from the company for personal use. June 28 The company paid $1,400 cash for wages to a drafting assistant. June 30 The company paid $2,940 cash for advertisements on the web during June. Descriptions of items that require adjusting entries on June 30, 2021, follow a) The company has completed, but not yet billed. $10,400 of engineering services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $3,200 salvage value, is $150 per month c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $10,600 salvage value, is $1,450 per month. d) Straight-line depreciation on the building, assuming a 25-year life and a $16,500 salvage value, is $110 per month e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1 1) Accrued interest on the long-term note payable is $120. g) The drafting assistant is paid $1,400 for a 5-day work week. 2 days' wages have been incurred but are unpaid as of month-end Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Empact on Income For each adjustment, indicate the income statement and balance sheet account offected, 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 drop-down.) Show less A 1 oints a) The company has completed, but not yet billed, $10,400 of engineering services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $3,200 salvage value, is $150 per month. c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $10,600 salvage value, is $1,450 per mont d) Straight-line depreciation on the building, assuming a 25-year life and a $16,500 salvage value, is $110 per month. e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1 1) Accrued interest on the long-term note payable is $120. g) The drafting assistant is paid $1,400 for a 5-day work week. 2 days' wages have been incurred but are unpaid as of month-en Print General Requirement Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet: Impact on Income 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 drop-down.) Unadjusted Adjusting entry related to: (a) Unbilled fees b) Depreciation of office equipment c) Depreciation of drafting equipment d) Depreciation of building e) Prepaid insurance f) Accrued interest g) Unpaid wages Account affecting the: Income Statement Balance Sheet Impact on net income Had the adjustments not been prepared, income would have been understated by < Balance Sheet Impact on hicome > $ 0 $ 0 0 Show less A