Rick Mitchell opened a business called Mitchell Engineering and recorded the following transactions in its first month of operations June 1 Rick Mitchell, the owner, invested $140,000 cash, office equipment with a value of $15,000, and $80,000 of drafting equipment to launch the company in exchange for common stock June 2 The company purchased land worth $59,000 for an office by paying $20,300 cash and signing a long term note payable for $38,700 June 2 The company purchased a portable building with $45,000 cash and moved it onto the land acquired on June 2 June 2 The company paid $9,000 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 $14,200 cash June 12 The company purchased $32,000 of additional drafting equipment by paying $19,500 cash and signing a long term note payable for $12,500 June 14 The company completed $30,000 of engineering services for a client This amount is to be received in 30 days June 15 The company purchased $2,150 of additional office equipment on credit June 17 The company completed engineering services for $26,000 on credit June 18 The company received a bill for rent of equipment that was used on a recently completed job The $2,300 rent cost must be paid within 30 days June 20 The company collected $15,000 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 $2,150 cash to settle the account payable created on June 15 June 24 The company paid $1,425 cash for minor maintenance of its drafting equipment June 26 The company paid $9,880 cash in dividends June 28 The company paid $1,200 cash for wages to a drafting assistant June 30 The company paid $3,300 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, $14,000 of engineering services for a client b) Straight line depreciation on the office equipment, assuming a 5 year life and a $2,750 salvage value, is $240 per month c) Straight line depreciation on the drafting equipment, assuming a 5 year life and a $19,000 salvage value, is $1,550 per month d) Straight line depreciation on the building, assuming a 25 year life and a $15,000 salvage value, is $100 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 $160 g) 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 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 Use the drop downs to select the accounts properly included on the balance sheet The unadjusted or adjusted balances will appear for each account, based on your selection Include all balance sheet accounts, even those with zero balances 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 )

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Rick Mitchell opened a business called Mitchell Engineering and recorded the following transactions in its first month of operations. June 1 Rick Mitchell, the owner,

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

June 1	Rick Mitchell, the owner, invested $140,000 cash, office equipment with a value of $15,000, and $80,000 of drafting equipment to launch the company in exchange for common stock.
June 2	The company purchased land worth $59,000 for an office by paying $20,300 cash and signing a long-term note payable for $38,700.
June 2	The company purchased a portable building with $45,000 cash and moved it onto the land acquired on June 2.
June 2	The company paid $9,000 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 $14,200 cash.
June 12	The company purchased $32,000 of additional drafting equipment by paying $19,500 cash and signing a long-term note payable for $12,500.
June 14	The company completed $30,000 of engineering services for a client. This amount is to be received in 30 days.
June 15	The company purchased $2,150 of additional office equipment on credit.
June 17	The company completed engineering services for $26,000 on credit.
June 18	The company received a bill for rent of equipment that was used on a recently completed job. The $2,300 rent cost must be paid within 30 days.
June 20	The company collected $15,000 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 $2,150 cash to settle the account payable created on June 15.
June 24	The company paid $1,425 cash for minor maintenance of its drafting equipment.
June 26	The company paid $9,880 cash in dividends.
June 28	The company paid $1,200 cash for wages to a drafting assistant.
June 30	The company paid $3,300 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, $14,000 of engineering services for a client.

b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $2,750 salvage value, is $240 per month.

c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $19,000 salvage value, is $1,550 per month.

d) Straight-line depreciation on the building, assuming a 25-year life and a $15,000 salvage value, is $100 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 $160.

g) 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.

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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. Use the drop-downs to select the accounts properly included on the balance sheet. The unadjusted or adjusted balances will appear for each account, based on your selection. Include all balance sheet accounts, even those with zero balances. 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.)