Spencer Lewis opened a business called Lewis Engineering and recorded the following transactions in its first month of operations, Jun. 1 Spencer Lewis, the owner, invested $110,000 cash, office equipment with a value of $7,588, and $65,000 of Jun. 2 The company purchased land worth $51,500 for an office by paying $9,888 cash and signing a long-term note payable for $41,700. Jun. 2 The company purchased a portable building with $52,500 cash and noved it onto the land acquired on June 2. Jun. 2 The company, paid $4,500 cash for the premium on a 15-month insurance policy. Jun. 7 The company completed and delivered a set of plans for a client and collected $8,200 cash. Jun. 12 The company purchased $23,000 of additional drafting equipment by paying $12,000 cash and signing a long-term Jun. 14 The company completed $18,000 of engineering services for a client. This amount is to be received in 30 days. Jun. 15 The company purchased $1,400 of additional office equipment on credit. Jun. 17 The company completed engineering services for $23,000 on credit. Jun. 18 The company received a bill for rent of equipment that was used on a recently completed job. The $1,558 rent cost must be paid within 30 days. Jun. 20 The company collected $9,000 cash in partial payment from the client billed on June 14. Jun. 21 The company paid $1,200 cash for wages to a drafting assistant. Jun. 23 The company paid $1,400 cash to settle the account payable created on June 15. Jun. 24 The company paid $1,050 cash for minor maintenance of its drafting equipment. Jun. 26 Spencer Lewis withdrew $9,580 cash from the company for personal use. Jun. 28 The company paid $1,200 cash for wages to a drafting assistant. Jun. 30 The company paid $2,700 cash for advertisements on the web during Junc. Descriptions of items that require adjusting entries on June 30, 2019, follow. a) The company has completed, but not yet billed. $8,000 of engineering services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $3,500 salvage value is $90 per month c) Straight-line depreciation on the drafting equipment, assuming a 5 year life and a $10,000 salvage value, is $1,300 per month, d) Straight-line depreciation on the building, assuming a 25-year life and a $13,500 salvage value, is $130 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 $100. 9) 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, Journal entry worksheet The company has completed, but not yet billed, $8,000 of engineering services for a client. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Account Title Debit Credit Date Jun 30 Record entry Clear entry View general Journal Journal entry worksheet Straight-line depreciation on the office equipment, assuming a 5-year life and a $3,500 salvage value, is $90 per month. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Date Jun 30 Account Title Debit Credit Record entry Clear entry View general journal Journal entry worksheet Straight-line depreciation on the building, assuming a 25-year life and a $13,500 salvage value, is $130 per month. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Account Title Debit Credit Date Jun 30 Record entry Clear entry View general Journal Journal entry worksheet The balance in prepaid insurance represents a 15-month policy that went into effect on June 1. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Account Title Debit Date Jun 30 Credit Record entry Clear entry View general journal Journal entry worksheet Accrued interest on the long-term note payable is $100. Prepare the required adjusting entry, if any. Note: Enter debits before credits. Account Title Debit Credit Date Jun 30 Record entry Clear entry View general journal Journal entry worksheet
