Alpha Graphics Company, Inc. was organized on January 1, 2014. At the end of the first 6 months of operations, the trial balance contained the accounts shown below.

Analysis reveals the following additional data.
1. The $3,900 balance in Supplies Expense represents supplies purchased in January. At June 30, $680 of supplies are on hand.
2. The note payable was issued on February 1. It is a 9%, 6-month note.
3. The balance in Insurance Expense is the premium on a one-year policy, dated March 1, 2014.
4. Service revenues are credited to revenue when received. At June 30, service revenue of
$1,100 is still not performed for the customer.
5. Depreciation is $2,250 per year.

Instructions
(a) Journalize the adjusting entries at June 30. (Assume adjustments are recorded every 6 months.)
(b) Prepare an adjusted trial balance.
(c) Prepare an income statement and a retained earnings statement for the 6 months ended June 30 and a balance sheet at June30.

Transcribed Image Text:

Debits Credits $ 20,000 9,000 22,000 58,280 Cash Accounts Rcccivable Equipment Insurance Expense Salaries and Wages Expense Supplics Expense Advertising Expense Rent Expensc Utilities Expensc $ 8,400 Notes Payable 14,000 45,000 2,880 30,000 3,900 1,900 1,500 1,700 109,280 Accounts Payable Common Stock Service Revenuc $109,280