Exam 1 Cash Problem #2 (38 points) Spring 2022 ABC Inc. adjusts and closes its accounts at the end of each month. The trial balance as of June 30, 2010, before adjustments, is as follows: Dr. Cr. Accounts Receivable $9,300 $13,500 Prepaid Insurance $2,500 Office Supplies $400 Medical Equipment Accumulated Depreciation $10,200 Accounts Payable $2,300 Notes Payable $1,500 Unearned Medical Fees $4,000 $7,000 Capital Stock $9,000 Retained Earnings $8,000 Dividends $500 Medical Fees Earned $15,500 Salaries Expense $7,000 Utilities Expense $1,000 Insurance Expense $2,900 Total S47,300 $47.300 The following information relates to month end adjustments: (a) Many patients pay in advance for major medical procedures. Fees of $3,000 were eamed during the month by performing procedures on patients who had paid in advance. (b) Medical procedures performed during the month but not yet billed or recorded amounted to $5,500. (c) Salaries earned by employees during the month but not yet recorded amounted to $1,600. (d) The useful life of the medical equipment was estimated to be 20 years. (e) On April 1, 2010, West Laboratory paid 4 month's insurance in advance. (1) On May 14, 2010, the company borrowed $4,000, by signing an eight month, 6% note payable. The entire note and all accrued interest are due on December 31, 2010. (g) Office supplies on hand on June 30 amounted to $50. Required: 1. For each lettered paragraph prepare the necessary adjusting entry; 2. Prepare: a. Income Statement for the month of June 2010; b. Statement of Retained Earnings for the month of June 2010; c. Balance Sheet as of June 30, 2010