For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments found on the income statement tab. (Hint: Select unadjusted on the drop-down.) 5. Walker, opened a business called Walker Engineering and recorded the following transactions in its first month of operations. June 1 5. Walker, the comer, Invested \$112, 500 cash, office equipment with a value of 58,000 , and $66,000 of drafting equighent to launch the company. June 2 The company purchased land worth $52,000 for an office by paylng $10,500 cash and signing a note payable for $41,500. June 2. The company purchosed a portable building with $52,600 cash and moved it onto the land acquired an June 2. June 2 The company paid $4,800 cash for the prealue on a 15 - nonth insurance pollicy. June 7 . the company coepleted and dellvered a set of plans for a client and collected s8, ce0 cash. June 12 the cospany purchased $23,690 of additional drafting equlpent by paying $12,500 cash and signing a payable for $11,100. 3une 14 the conpany conpleted $18,600 of engineering services for a client. This anount is to be recelved in 30 . days. June 15 The cospany purchased $1,450 of addittonal office equipent on credit. Jine 17 the company coopleted engineering services for $23,200 on credit. june 15 The coppany recelved a bill for rent of equipeent that was uned on a recently conpleted fob. The s1, 6e0 rent cost nust be pald within 30 days. June 20 The conpany collected 39,400 cash in partial paynent from the cllent billed on zune 14. June 21 . The coepany paid $1,400 cash for wages to a drafting assistant. June 21. The company paid $1,450 cash to settle the account payable created on June 15. Jure 24 the company paid 51,075 cash for repairs. June 265. Holken withdres 89,660 cash fron the conpany for persanal use. lune 28 The conpony paid $1,400cash for wages to o drafting assistant. june 30 The conpany paid 52,740 cash for advertiseaents on the veb dueing June. Descriptions of items that require adjusting entries on June 30,2021 , follow a) The company has completed, but not yet billed, $8,400 of engineering services for a client. b) Straight line depreciation on the office equipment, assuming a 5-year life and a $3.450 salvage value, is $100 per month. c) Straight line depreciation on the drafting equipment, assuming a 5 -year life and a $17.600 salvage value, is $1,200 per month. d) Straight-line depreciation on the building, assuming a 25 year life and a $16.000 salvage value, is $120 per month. e) The balance in prepaid insurance represents a 15 -month policy that went into effect on June 1 fi Accrued interest on the long-term note payable is $100 : 9) 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. For oach adjustment, indicate the income statensent and bolance sheot account affected, and the impact on ner income. If an atjustment caused net inceme to decrease, enter the amount as a liegativet value. Net income before adjustments can be found on tho incorni stotement tah. (Hint. Stelect umadjusted on the drop-down.)
