GL0304 (Static) - Extension of Problem 2-2A Aracel Engineering LO P1, P2, P3, P4, P5 Jenna Aracel opened a business called Aracel Engineering and recorded the following transactions in its first month of operations. June 1 Jenna Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and $60,000 of drafting equipment to launch the company in exchange for common stock. June 2 The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42, 700. June 2 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2. June 2 The company paid $3,000 cash for the premium on a 18-month insurance policy. June 7 The company completed and delivered a set of plans for a client and collected $6, 200 cash. June 12 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500. June 14 The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days. June 15 The company purchased $1,150 of additional office equipment on credit. June 17 The company completed engineering services for $22,000 on credit. June 18 The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days. June 20 The company collected $7,000 cash in partial payment from the client billed on June 14. June 21 The company paid $1,200 cash for wages to a drafting assistant. June 23 The company paid $1,150 cash to settle the account payable created on June 15. June 24 The company paid $925 cash for minor maintenance of its drafting equipment. June 26 The company paid $9,480 cash in dividends. June 28 The company paid $1,200 cash for wages to a drafting assistant. June 30 The company paid $2,500 cash for advertisements on the web during June. Descriptions of items that require adjusting entries on June 30, follow. a) The company has completed, but not yet billed, $6,000 of engineering services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $150 salvage value, is $100 per month. c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $2,000 salvage value, is $1,300 per month. d) Straight-line depreciation on the building, assuming a 25-year life and a $1,000 salvage value, is $180 per month. e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1. f) Accrued interest on the long-term note payable is $75. g) The drafting assistant is paid $1,200 for a 5-day work week. 2 days' wages have been incurred but are unpaid as of month-end. Use the drop-downs to select the accounts properly included on the income statement. The un balances will appear for each account, based on your selection. Adjusted Revenues: Expenses: ARACEL ENGINEERING Income Statement For Month Ended June 30, 2022 $ 0 0 $ 0 Net income < Trial Balance 0 0 0 0 0 0 0 0 0 0 0 $ 0 St of Retained Earnings > Adjusted Current assets: ARACEL ENGINEERING Balance Sheet June 30, 2022 ASSETS Plant assets: $ 0 0 LIABILITIES AND EQUITY Liabilities: Equity: 0 $ 69 0 0 0 0 0 $ 0 $ c 0 0 0 0 0 General Requirement Journal General Ledger Trial Balance Income Statement St of Retained Earnings Impact on Balance Sheet Income For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net inc If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can b found on the income statement tab. (Hint: Select unadjusted on the drop-down.) Adjusted 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 $ 0 $ 0 0 Show le