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. 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. Impact on Income Requirement General General Income Trial Balance St Retained Journal Ledger Statement Earnings Balance Sheet The unadjusted or adjusted balances will appear for each account, based on your selection. Adjusted PERRY ENGINEERING Statement of Retained Earnings For Month Ended June 30, 2020 Retained earnings, June 1, 2020 Add: Net income Less: Dividends Retained earnings, June 30, 2020 $ 0 (10,020)