Isaac Carter opened a business called Carter Engineering and recorded the following transactions in its first month of operations. $38,900 Jun. Jun. Jun. 1 Isaac Carter, the owner, invested $138.888 cash, office equipment with a value of $14,509, and $79,898 of drafting equipment to launch the company in exchange for common stock. Jun. 2 The company purchased land worth $58,588 for an office by paying $19,680 cash and signing a long-term note payable for 2 The company purchased a portable building with $45,500 cash and moved it onto the land acquired on June 2. 2 The company paid $8,789 cash fer the premium on a 15-month insurance policy. Turl. 7 The company completed and delivered a set of plans for a client and collected $13,800 cash. Jun. 12 The company purchased $31,468 of additional drafting equipment by paying $19,800 cash and signing a long-term note payable for $12.460. Jun. 14 The company completed $29,286 of engineering services for a client. This amount is to be received in 3e days. Jun. 15 The company purchased $2,189 of additional office equipment on credit. Jun. 17 The company completed engineering services for $25,908 on credit. Jun. 18 The company received a bill for rent of equipment that was used on a recently completed job. The $2,250 rent cost must be paid within 30 Jun. 20 The company collected $14,608 cash in partial payment from the client billed on June 14. Jun. 21 The company paid $2,888 cash for wages to a drafting assistant. Jun. 23 The company paid $2,100 cash to settle the account payable created on June 15. Jun. 24 The company paid $1,480 Cash for minor maintenance of its drafting equipment. Jun. 26 The company paid 59,860 cash in dividends. Jun. 28 The company paid $2,see cash for wages to a drafting assistant. Jun 30 The company paid $3,268 cash for advertisements on the web during June Descriptions of items that require adjusting entries on June 30, follow. m a) The company has completed, but not yet billed. $13,600 of engineering services for a client. b) Stralght-line depreciation on the office equlpment, assuming a 5-year life and a $2,800 salvage value is $230 per month c) Stralght-line depreciation on the drafting equipment, assuming a 5-year life and a $11.400 salvage value, is $1.650 per month d) Straight-line depreciation on the building, assuming a 25-year life and a $12.500 salvage value is $110 per month. e) The balance in prepald Insurance represents a 15-month policy that went into effect on June 1. f) Accrued Interest on the long-term note payable is $150. g) The drafting assistant is pald $2,000 for a 5-day work week. 2 days wages have been incurred but are unpaid as of month-end. View transaction ist Journal entry worksheet 3 4 5 6 The company has completed, but not yet billed, $13,600 of engineering services for a client. Prepare the required adjusting entry, if any. Note: Enter debits betore credits Date Account Title Debit Credit Jun 30 Record entry Clear entry View general Journal Unadjusted General Ledger Account Cash Accounts receivable No. Debit Date Credit No. Date Credit Debit Balance Balance 52,980 Jun 30 Jun 30 40,400 Office equipment Prepaid insurance Debit Credit No. No Date Debit Credit Date Jun 30 Balance 8,700 Balance 16,800 Jun 30 Building Drafting equipment Debit Credit No. No Date Debit Credit Date Jun 30 Balance 110,400 Balance 45,500 Jun 30 Land Accounts payable No. Debit Credit No Date Debit Credit Date Jun 30 Balance 58,500 Balance 2,250 Jun 30 Long-term notes payable Common stock No. Debit Credit No. Date Debit Credit Date Jun 30 Balance 51,300 Balance 231,500 Dividends Engineering fees earned Debit Credit No. Date Debit Credit No. Date Balance 9.860 Balance 68,800 Jun 30 Wages expense Debit Credit Equipment rental expense Debit Credit No. No. Date Date Jun 30 Balance 4000 Balance 2,250 Jun 00 Advertising expense Debit Credit Repairs expense Debit Credit No. No. Date Jun 30 Balance 3,280 Date Jun 20 Balance 1.400 Generalloumal Trial Balance 5 General Journal General Ledger Requirement Trial Balance Income statement St Retained Earnings Balance Sheet Impact on Income You may view either the unadjusted or adjusted trial balance by choosing from the drop-down box below. Your choice will determine the reported values on the financial statement tabs Unadjusted CARTER ENGINEERING Tha Balance June 30, 2016 Account Title Debit Credit $ 52,980 40.400 8.700 16,600 110,400 45,500 58 500 EEEEEEEEEEEEEE 2.250 Cash Accounts receivable Prepaid insurance Office equipment Drafting equipment Building Land Accounts payable Long-term notes payable Common stock Dividends Engineering fees earned Wages expense Equipment rental expense Advertising expense Repairs expense Total 51,300 231 500 9.880 88.800 4.000 2.250 3.280 1400 853 850 $ $ 353,850 ter 3 Homework 3 CARIER ENGINEERING Balance Sheet June 30, 2019 ASSETS Current assets: Book Plant assets: LIABILITIES AND EQUITY Liabilities: Equity Unadjusted Account affecting the Income Statement Balance Sheet Impact on net income 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 9) Unpaid wages ter 3 Homework 3 CARIER ENGINEERING Balance Sheet June 30, 2019 ASSETS Current assets: Book Plant assets: LIABILITIES AND EQUITY Liabilities: Equity Unadjusted Account affecting the Income Statement Balance Sheet Impact on net income 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 9) Unpaid wages