Kathy Perry opened a business called Perry Engineering and recorded the following transactions in its first month of operations. Jun. 1 Kathy Perry, the owner, invested $154,000 cash, office equipment with a value of $18,500, and $87,000 of drafting equipment to launch the company in exchange for common stock. Jun. 2 The company purchased land worth $62,500 for an office by paying $25,200 cash and signing a long-term note payable for $37,300. Jun. 2 The company purchased a portable building with $41,500 cash and moved it onto the land acquired on June 2. Jun. 2 The company paid $11,100 cash for the premium on a 15-month insurance policy. Jun. 7 The company provided services to a client and collected $17,000 cash. Jun. 12 The company purchased $36,200 of additional drafting equipment by paying $23,000 cash and signing a long-term note payable for $13,200. Jun. 14 The company completed $35,600 of services for a client. This amount is to be received in 30 days. Jun. 15 The company purchased $2,500 of additional office equipment on credit. Jun. 17 The company completed services for a customer for $27,400 on credit. Jun. 18 The company purchased $2,650 of TV advertising on credit. Jun. 20 The company collected $17,800 cash in partial payment from the client billed on June 14. Jun. 21 The company paid $1,600 cash for employee wages. Jun. 23 The company paid $2,500 cash to settle the account yable created on June 15. Jun. 24 The company paid $1,600 cash for repairs. Jun. 26 The company paid $10,020 cash in dividends. Jun. 28 The company paid $1,600 cash for employee wages. Jun. 30 The company paid $3,580 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, $16,800 of services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $2,400 salvage value, is $310 per month. c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $12,200 salvage value, is $1,850 per month. d) Straight-line depreciation on the building, assuming a 25-year life and a $8,500 salvage value, is $110 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 $180. g) The drafting assistant is paid $1,600 for a 5-day work week. 2 days' wages have been incurred but are unpaid as of month-end. Adjusted PERRY ENGINEERING Balance Sheet June 30, 2020 ASSETS Current assets: $ 0 0 0 0 $ 0 Plant assets: 0 0 0 $ 0 0 LIABILITIES AND EQUITY Liabilities: S OOOOO 0 Equity: 0 $ 0 Kathy Perry opened a business called Perry Engineering and recorded the following transactions in its first month of operations. Jun. 1 Kathy Perry, the owner, invested $154,000 cash, office equipment with a value of $18,500, and $87,000 of drafting equipment to launch the company in exchange for common stock. Jun. 2 The company purchased land worth $62,500 for an office by paying $25,200 cash and signing a long-term note payable for $37,300. Jun. 2 The company purchased a portable building with $41,500 cash and moved it onto the land acquired on June 2. Jun. 2 The company paid $11,100 cash for the premium on a 15-month insurance policy. Jun. 7 The company provided services to a client and collected $17,000 cash. Jun. 12 The company purchased $36,200 of additional drafting equipment by paying $23,000 cash and signing a long-term note payable for $13,200. Jun. 14 The company completed $35,600 of services for a client. This amount is to be received in 30 days. Jun. 15 The company purchased $2,500 of additional office equipment on credit. Jun. 17 The company completed services for a customer for $27,400 on credit. Jun. 18 The company purchased $2,650 of TV advertising on credit. Jun. 20 The company collected $17,800 cash in partial payment from the client billed on June 14. Jun. 21 The company paid $1,600 cash for employee wages. Jun. 23 The company paid $2,500 cash to settle the account yable created on June 15. Jun. 24 The company paid $1,600 cash for repairs. Jun. 26 The company paid $10,020 cash in dividends. Jun. 28 The company paid $1,600 cash for employee wages. Jun. 30 The company paid $3,580 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, $16,800 of services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $2,400 salvage value, is $310 per month. c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $12,200 salvage value, is $1,850 per month. d) Straight-line depreciation on the building, assuming a 25-year life and a $8,500 salvage value, is $110 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 $180. g) The drafting assistant is paid $1,600 for a 5-day work week. 2 days' wages have been incurred but are unpaid as of month-end. Adjusted PERRY ENGINEERING Balance Sheet June 30, 2020 ASSETS Current assets: $ 0 0 0 0 $ 0 Plant assets: 0 0 0 $ 0 0 LIABILITIES AND EQUITY Liabilities: S OOOOO 0 Equity: 0 $ 0