Hao Lee opened a business called Lee Engineering and recorded the following transactions in its first month of operations. June 1 Hao Lee, the owner, invested $120,000 cash, office equipment with a value of $10,000, and $70,000 of drafting equipment to launch the company in exchange for common stock. June 2 The company purchased land worth $54,000 for an office by paying $13,300 cash and signing a long-term note payable for $40,700. June 2 The company purchased a portable building with $50,000 cash and moved it onto the land acquired on June 2. June 2 The company paid $6,000 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 $10,200 cash. June 12 The company purchased $26,000 of additional drafting equipment by paying $14,500 cash and signing a long-term note payable for $11,500. June 14 The company completed $22,000 of engineering services for a client. This amount is to be received in 30 days. June 15 The company purchased $1,650 of additional office equipment on credit. June 17 The company completed engineering services for $24,000 on credit. June 18 The company received a bill for rent of equipment that was used on a recently completed job. The $1,800 rent cost must be paid within 30 days. June 20 The company collected $11,000 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 $1,650 cash to settle the account payable created on June 15. June 24 The company paid $1,175 cash for minor maintenance of its drafting equipment. June 26 The company paid $9,680 cash in dividends. June 28 The company paid $1,200 cash for wages to a drafting assistant. June 30 The company paid $2,900 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, $10,000 of engineering services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $3,250 salvage value, is $140 per month. c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $18,000 salvage value, is $1,300 per month. d) Straight-line depreciation on the building, assuming a 25-year life and a $14,000 salvage value, is $120 per month. e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1. f) Accrued interest on the long-term note payable is $120. 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. 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 Had the adjustments not been prepared, income would have been understated by < Balance Sheet Impact on Income > Impact on net income $ 0 $ 0 0