On January 1, 2017 Baker purchased a new stamping machine for its plant. This new piece of equipment cost $120,000 and was recorded in Baker's accounting system with a $120,000 debit to the Equipment account and a $120,000 credit to the Cash account. Baker estimates that the stamping machine will last 5 years and will have no value at the end of those 5 years. At the end of January, February, March, April, and May, Baker made the correct depreciation adjusting entries. Select the June 30, 2017 adjusting entry Baker should make for June's depreciation: Accumulated Depreciation 2,000 . Depreciation Expense 2,000 12,000 (B Depreciation Expense Accumulated Depreciation 12,000 .. Depreciation Expense 2,000 Accumulated Depreciation 2,000 Depreciation Expense 2,000 Accumulated Depreciation 2,000 Depreciation Expense 24,000 Cash 2,000 Loss on Equipment 22.000 E None of the above As of June 1, 2017 the beginning balance in the asset account Supplies was $10,000. On June 10, 2017 Baker purchased $7,000 of additional supplies and made the following entry: Dr. Cr. Supplies 7,000 Cash 7,000 The entry above is the only entry Baker made to the Supplies account during the month of June. Based on a physical count, Baker determined that there are $11,500 of supplies remaining on-hand as of June 30. Select the Supplies adjusting entry Baker should make as of June 30, 2017: 11,500 (. Supplies Expense Supplies 11,500 Supplies Expense 5,500 ( Supplies 5,500 Supplies Expense 5,500 Supplies 5,500 Supplies 11,500 Supplies Expense 11.500 Supplies 4,500 Supplies Expense 4,500 E None of the above Baker pays its employees each Friday for the work that they performed that week. On June 30, Baker owes its employees $3,400 for 3 days of work the employees performed after the last Friday payday in June. This $3,400 will be paid to the employees in July. The current balance in the Wages Payable account is $0. Select the adjusting entry Baker should make as of June 30, 2017 related to these 3 days of unpaid wages: Wages Payable 3,400 A Wages Expense 3,400 Wages Expense 3,400 Wages Payable 3,400 Wages Expense 3,400 Cash 3,400 D No adjusting entry is required (E None of the above If Baker did not make the above June 30 adjusting entry for Wages owed to employees: The errors on the Income Statement for June would be: items understated: Wages Expense, Total Expenses item overstated: Net Income The errors on the June 30 Balance Sheet would be: items understated: Wages Payable, Total Liabilities items overstated: Retained Earnings, Total Equity The errors on the Income Statement for June would be: item understated: Net Income items overstated: Wages Expense, Total Expenses () The errors on the June 30 Balance Sheet would be: item understated: Cash items overstated: Wages Payable, Total Liabilities The errors on the Income Statement for June would be: items understated: none items overstated: Wages Expense, Total Expenses, Net Income The errors on the June 30 Balance Sheet would be: items understated: Wages Payable, Total Liabilities items overstated: Cash, Total Liabilities and Equity D There would not be any errors, as no adjusting entry is required. On January 1, 2017 Baker purchased a new stamping machine for its plant. This new piece of equipment cost $120,000 and was recorded in Baker's accounting system with a $120,000 debit to the Equipment account and a $120,000 credit to the Cash account. Baker estimates that the stamping machine will last 5 years and will have no value at the end of those 5 years. At the end of January, February, March, April, and May, Baker made the correct depreciation adjusting entries. Select the June 30, 2017 adjusting entry Baker should make for June's depreciation: Accumulated Depreciation 2,000 . Depreciation Expense 2,000 12,000 (B Depreciation Expense Accumulated Depreciation 12,000 .. Depreciation Expense 2,000 Accumulated Depreciation 2,000 Depreciation Expense 2,000 Accumulated Depreciation 2,000 Depreciation Expense 24,000 Cash 2,000 Loss on Equipment 22.000 E None of the above As of June 1, 2017 the beginning balance in the asset account Supplies was $10,000. On June 10, 2017 Baker purchased $7,000 of additional supplies and made the following entry: Dr. Cr. Supplies 7,000 Cash 7,000 The entry above is the only entry Baker made to the Supplies account during the month of June. Based on a physical count, Baker determined that there are $11,500 of supplies remaining on-hand as of June 30. Select the Supplies adjusting entry Baker should make as of June 30, 2017: 11,500 (. Supplies Expense Supplies 11,500 Supplies Expense 5,500 ( Supplies 5,500 Supplies Expense 5,500 Supplies 5,500 Supplies 11,500 Supplies Expense 11.500 Supplies 4,500 Supplies Expense 4,500 E None of the above Baker pays its employees each Friday for the work that they performed that week. On June 30, Baker owes its employees $3,400 for 3 days of work the employees performed after the last Friday payday in June. This $3,400 will be paid to the employees in July. The current balance in the Wages Payable account is $0. Select the adjusting entry Baker should make as of June 30, 2017 related to these 3 days of unpaid wages: Wages Payable 3,400 A Wages Expense 3,400 Wages Expense 3,400 Wages Payable 3,400 Wages Expense 3,400 Cash 3,400 D No adjusting entry is required (E None of the above If Baker did not make the above June 30 adjusting entry for Wages owed to employees: The errors on the Income Statement for June would be: items understated: Wages Expense, Total Expenses item overstated: Net Income The errors on the June 30 Balance Sheet would be: items understated: Wages Payable, Total Liabilities items overstated: Retained Earnings, Total Equity The errors on the Income Statement for June would be: item understated: Net Income items overstated: Wages Expense, Total Expenses () The errors on the June 30 Balance Sheet would be: item understated: Cash items overstated: Wages Payable, Total Liabilities The errors on the Income Statement for June would be: items understated: none items overstated: Wages Expense, Total Expenses, Net Income The errors on the June 30 Balance Sheet would be: items understated: Wages Payable, Total Liabilities items overstated: Cash, Total Liabilities and Equity D There would not be any errors, as no adjusting entry is required