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

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 unadjusted or adjusted balances will appear for each account, based on your selection. Use the drop-downs to select the accounts properly included on the income statement. The unadjusted or adjusted balances will appear for each account, based on your selection