Givens Graphics Company was organized on January 1, 2010, by Sue Givens. At the end of the first 6 months of operations, the trial balance contained the accounts on the next page.

Analysis reveals the following additional data.

1. The $3,700 balance in Supplies Expense represents supplies purchased in January. At June 30, $1,300 of supplies was 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,

2010.

4. Consulting fees are credited to revenue when received. At June 30, consulting fees of $1,500 are unearned.

5. Graphic revenue earned but unrecorded at June 30 totals $2,000.

6. Depreciation is $2,000 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 owner’s equity statement for the 6 months ended June 30 and a balance sheet at June 30.

Transcribed Image Text:

Credits Debits $ 9,500 $ 20,000 Notes Payable Accounts Payable Sue Givens, Capital Graphic Revenue Consulting Revenue Cash 9,000 Accounts Receivable 14,000 45,000 22,000 Equipment Insurance Expense Salaries Expense Supplies Expense Advertising Expense Rent Expense Utilities Expense 1,800 52,100 30,000 6,000 3,700 1,900 1,500 1,700 $109,100 $109,100