Requirement General Journal General Ledger Trial Balance Income Statement St Owners Equity Balance Sheet Impact on 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 Adjusted Account affecting the Income Statement Balance Sheet Impact on net Adjusting entry related to ) Unbilledfoon b) Depreciation of office equipment c) Depreciation of drafting equipment d) Depreciation of building a) Prepaid insurance Accrued interest al Unpaid wagen 5 0 0 Had the adjustments not been prepared. Income would have been understated by Balance Slot Arace opened a business called Aracel Engineering and recorded the following transactions in its first month of operations June 1 ). Aracel, the owner, invested $100,000 cash, office equipment with a value of $5,000, and 560,000 of drafting equipment to launch the company. June? The company purchased Land worth $49,000 for an office by paying $6,300 cash and signing note payable for $42,700. June 2 The company purchased a portable building with 555,600 cash and moved it onto the land acquired on June 2. une 2 The company paid $3,000 cash for the premium on a 15-month Insurance policy. June 7 The company completed and delivered a set of plans for a client and collected $6,200 cash. June 12 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a note payable for $10,500 June 14 The company completed $14,000 of engineering services for client. This mount is to be received in 0 days. June 15 The company purchased 51,158 of additional office equipment on credit. June 19 The company completed engineering services for $22,000 on credit. Jure in the company received a bill for rent of equipment that was used on a recently completed Job. The $1,333 rent cost must be ald thin 30 days. June 20 The company collected 57,000 cash in partial payment from the client billed on June 14 June 21 The company paid $1,200 cash for wages to a drafting assistant June 23 The company paid 51.150 cash to settle the account payable created on June 15. June 24 The company paid 5925 cash for repairs June 26 ) Aracel withdrew $9.430 cash from the company for personal use. June 28 The company paid $1,200 cash for wages to drafting assistant. June 30 The company paid $2,500 cash for advertisements on the web during Junt. Descriptions of items that require adjusting entries on June 30, 2021, 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 1) Accrued interest on the long-term note payable is $75 c) 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 Income 5t Owners Tral Balance Journal Impact on Balance sheet Ledger statement Equity Income Canal Journal tab-for each transaction, review the uradjusted balance and prepare the adjusting entry necessary to fety report the revenue earned or the expense incurred. After adjunting the accounts, review the general ledger and al balance for accuracy General Ledger teb Each journal entry is posted automatically to the general ledger. Use the drop-down button to view adjusted or adjusted balance mal Balance tab You may view either the unadjusted or adjusted trial balance by choosing from the dropdown box Your choice will determine the reported values on the financial statement tabs tatement tab Use the drop down to select the accounts properly included on the income statement The adjusted or adjusted balances will appear for each account based on your selection