Lindsey Martin opened a business called Martin Engineering and recorded the following transactions in its first month of operations.

Jun.		1		Lindsey Martin, the owner, invested $122,000 cash, office equipment with a value of $10,500, and $71,000 of drafting equipment to launch the company in exchange for common stock.
Jun.		2		The company purchased land worth $54,500 for an office by paying $14,000 cash and signing a long-term note payable for $40,500.
Jun.		2		The company purchased a portable building with $49,500 cash and moved it onto the land acquired on June 2.
Jun.		2		The company paid $6,300 cash for the premium on a 15-month insurance policy.
Jun.		7		The company provided services to a client and collected $10,600 cash.
Jun.		12		The company purchased $26,600 of additional drafting equipment by paying $15,000 cash and signing a long-term note payable for $11,600.
Jun.		14		The company completed $22,800 of services for a client. This amount is to be received in 30 days.
Jun.		15		The company purchased $1,700 of additional office equipment on credit.
Jun.		17		The company completed services for a customer for $24,200 on credit.
Jun.		18		The company purchased $1,850 of TV advertising on credit.
Jun.		20		The company collected $11,400 cash in partial payment from the client billed on June 14.
Jun.		21		The company paid $1,400 cash for employee wages.
Jun.		23		The company paid $1,700 cash to settle the account payable created on June 15.
Jun.		24		The company paid $1,200 cash for repairs.
Jun.		26		The company paid $9,700 cash in dividends.
Jun.		28		The company paid $1,400 cash for employee wages.
Jun.		30		The company paid $2,940 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, $10,400 of services for a client.

• b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $3,200 salvage value, is $150 per month.

• c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $10,600 salvage value, is $1,450 per month.

• d) Straight-line depreciation on the building, assuming a 25-year life and a $16,500 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 $120.

• g) The drafting assistant is paid $1,400 for a 5-day work week. 2 days' wages have been incurred but are unpaid as of month-end.

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No Date Account Title Debit Credit 1 Jun 30 10.400 Accounts receivable Services revenue 10.400 2 Jun 30 150 Depreciation expense - Office equipment Accumulated depreciation - Office equipment 150 3 Jun 30 1.450 Drafting equipment Accumulated depreciation - Drafting equipment 1,450 4 Jun 30 110 Depreciation expense - Building Accumulated depreciation - Building - 110 5 Jun 30 Insurance expense 420 Prepaid insurance 420 6 Jun 30 120 Interest expense Interest payable 120 7 Jun 30 580 Wages expense Wages payable 560 General General Income Trial Balance St Retained Impact on Requirement Balance Sheet Journal Ledger Statement Earnings Income Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted or adjusted balances. Unadjusted General Ledger Account Cash Accounts receivable Debit Credit No. Debit Credit Balance No. Date Date Jun 30 Balance 35.600 40,860 Jun 30 Prepaid insurance Office equipment No. Date Debit Credit No. Debit Credit Balance 8.300 Date Jun 30 Balance 12.200 Jun 30 Building Drafting equipment Debit Credit No. Date Balance No. Date Debit Credit Balance Jun 30 97.600 Jun 30 40.500 Land Accounts payable Debit Credit No. Date Debit Credit No. Date Balance 54,500 Balance 1.850 Jun 30 Jun 30 Long-term notes payable Common stock No. Date Debit Credit No. Debit Credit Balance 52,100 Date Jun 30 Balance 203.500 Jun 30 Dividends Services revenue Debit Credit No. Date Debit Credit No. Balance 9.700 Date Jun 30 Balance 57.800 Jun 30 Wages expense Debit Credit Advertising expense Debit Credit No. No. Date Jun 30 Balance 2.800 Date Jun 30 Balance 4.790 Repairs expense No. Date Debit Credit Balance Jun 30 1,200 Requirement General Journal General Ledger 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 MARTIN ENGINEERING Trial Balance June 30, 2020 Account Title Debit Credit Cash S 40.860 Accounts receivable 35,600 8,300 12.200 97,600 49.500 54.500 1.850 52.100 Prepaid insurance Office equipment Drafting equipment Building Land Accounts payable Long-term notes payable Common stock Dividends Services revenue Wages expense Advertising expense Repairs expense Total 203.500 9.700 57.600 2.800 4,790 1.200 S 315.050 $ 315.050 Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Impact on Income 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. Unadjusted MARTIN ENGINEERING Income Statement For Month Ended June 30, 2020 Revenues: S 0 0 0 $ 0 Expenses: 0 0 0 OO 0 0 0 0 0 0 Net income S 0 Impact on Income General General Income St Retained Trial Balance Requirement Journal Ledger Statement Earnings Balance Sheet The unadjusted or adjusted balances will appear for each account, b: Income Statement Unadjusted MARTIN 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 S 0 (9.700) Unadjusted MARTIN ENGINEERING Balance Sheet June 30, 2020 ASSETS Current assets s 0 0 0 $ Plant assets: ol $ LIABILITIES AND EQUITY Liabilities $ 0 0 0 0 0 0 Equity General General Income St Retained Requirement Trial Balance Impact on Journal Balance Sheet Ledger Statement Earnings Income For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the drop-down.) Show less 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 $ 0 $ 0 Had the adjustments not been prepared, income would have been understated by 0