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Swear this is only one question with multiple parts lol, issa long boy. On the journal entry ignore the 5's. I put them there so
Swear this is only one question with multiple parts lol, issa long boy. On the journal entry ignore the 5's. I put them there so you could see the whole picture rather piece by piece.
Juan Perez opened a business called Perez Engineering and recorded the following transactions in its first month of operations. Jun. 1 Juan Perez, the owner, invested $118,000 cash, office equipment with a value of $9,500, and $69,000 of drafting equipment to launch the company in exchange for common stock. Jun. 2 The company purchased land worth $53,500 for an office by paying $12,600 cash and signing a long-term note payable for $40,900. Jun. 2 The company purchased a portable building with $50,500 cash and moved it onto the land acquired on June 2. Jun. 2 The company paid $5,700 cash for the premium on a 15-month insurance policy. Jun. 7 The company provided services to a client and collected $9,800 cash. Theo Jun. 12 The company purchased $25,400 of additional drafting equipment by paying $14,000 cash and signing a long-term note payable fond for $11,400. Jun. 14 The company completed $21,200 of services for a client. This amount is to be received in 30 days. then Jun. 15 The company purchased $1,600 of additional office equipment on credit. Jun. 17 The company completed services for a customer for $23,800 on credit. 1 The company w Jun. 18 The company purchased $1,750 of TV advertising on credit. Jun. 20 The company collected $10,600 cash in partial payment from the client billed on June 14. Jun. 21 The company paid $2,000 cash for employee wages. Jun. 23 The company paid $1,600 cash to settle the account payable created on June 15. Jun. 24 The company paid $1,150 cash for repairs. Jun. 26 The company paid $9,660 cash in dividends. Jun. 28 The company paid $2,000 cash for employee wages. Jun. 30 The company paid $2,860 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, $9,600 of services for a client. b) Straight-line depreciation on the office equipment, assuming a 5-year life and a $3,300 salvage value, is $130 per month. c) Straight-line depreciation on the drafting equipment, assuming a 5-year life and a $10,400 salvage value, is $1,400 per month. d) Straight-line depreciation on the building, assuming a 25-year life and a $11,500 salvage value, is $130 per month. e) The balance in prepaid insurance represents a 15-month policy that went into effect on June 1. f) Accrued interest on the long-term note payable is $110. g) The drafting assistant is paid $2,000 for a 5-day work week. 2 days' wages have been incurred but are unpaid as of month-end. View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Jun 30 5 5 2 Jun 30 5 5 3 Jun 30 5 5 4 Jun 30 5 5 5 Jun 30 5 5 5 6 Jun 30 5 5 7 Jun 30 55 | 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. Show less Unadjusted PEREZ ENGINEERING Balance Sheet June 30, 2020 ASSETS Current assets: $ 0 0 0 0 $ 0 Plant assets: 0 0 0 0 $ 0 LIABILITIES AND EQUITY Liabilities: $ 0 Ooo 0 0 0 0 0 Equity: 0 0 $ 0 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 A Unadjusted Account affecting the: Impact on net income Income Statement Balance Sheet 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 g) Unpaid wages $ 0 $ 0 Had the adjustments not been prepared, income would have been understated by 0Step by Step Solution
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